Farm Business Management - AgCentric · 2015 Northern Minnesota Annual Report Page 2 Farm Business Management Education Programs 2015 Annual Report – Executive Summary The 2015

Farm Business ManagementFarm Business Management

2015annualreport

Northern Minnesota

www.fbm.mnscu.edu A Management Education Program through AgCentric, Northern Center of Excellence for Agriculture

A MEMBER OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES SYSTEM

April, 2016

Roseau

Kit

tso

n

Marshall

PolkPennington

Red Lake

MahnomenNorman

ClayW

ilkin

Becker

Otter Tail

GrantDouglas

Stearns

Ramsey

Anoka

SherburneIsanti

Chi

sago

PineTodd

Morrison

Benton

Mill

e La

cs

Wadena

Hubbard

Cle

arw

ater

Beltrami

Lake ofthe Woods

Koochiching

Itasca

Cass

Cro

w W

ing

Aitkin Carlton

Kanabec

St. Louis

Lake

Cook

Greg DvergstenThief River Falls(218) 686-7273

Ron DvergstenThief River Falls(218) 686-5448

Doug FjerstadFosston(218) 280-8843

Greg KalinoskiRed Lake Falls(218) 686-2626

Paul OehlkeFergus Falls(701) 899-2690

ADawn NelsonThief River Falls(218) 684-1047

Josh TjosaasMoorhead(320) 583-5056

Bob StommesMelrose(320) 256-4340

Northland

Nate ConverseLittle Falls(218) 296-1272

Thaddeus McCamantStaples(218) 894-9709

Bob RickStaples(218) 820-8699

Robin BeckMora(763) 274-9547

Ed UhlenkampStaples(320) 360-2747

Central Lakes

Ken ThiesenSt. Cloud(320) 309-3293

Jim MolenaarSt. Cloud(320) 308-5074

St. Cloud

Ridgewater

Bill JanuszewskiAlexandria(218) 329-2373

Alexandria

Northern Minnesota Annual Report Instructors and Locations

TABLE OF CONTENTSDescription Page Number

Table of Contents 1

Executive Summary 2 - 3

5-Year Financial Trend Summary 4Year at a Glance 5

Financial Summary: Selected Factors sorted by Type of Farm with graphs 6 - 7

Financial Summary: Selected Factors sorted by Years Farming 8

Average Money Spent Chart and Report Overview 9

AgCentric and Central Lakes College information 10

Financial Summary: Selected Factors sorted by Gross Income 11

Farm Income Statement 12 - 13

Balance Sheet - "Cost Value Basis" and "Market Value Basis" 14 - 15

Definitions of Financial Standards Measures 16 - 17

Financial Standards Measures and "How does your Farm Stack Up" 18 - 19

Profitability Measures 20

Liquidity and Repayment Capacity Measures 21

Graphic Summary of Selected Financial Guideline Measures 22

Operator and Labor Information 23

Household & Personal Expense Reported 24

Nonfarm Summary 25

Financial Summary: Selected Factors sorted by Crop Acres 26

Crop Production and Marketing Summary 27

Overview of Enterprise Tables and Machine Cost per Acre 28

Five Year Graphic History of Selected Crop Data 29

Corn 30-31

Soybeans 32-33

Spring Wheat 34-35

Corn Silage 36-37

Hay, Alfalfa 38-39

Hay, Mixed 40-41

Hay, Grass 42

Establish Alfalfa Hay, Pasture, and Prevented Planting 43

Irrigated Crops: Corn, Corn Silage, Alfalfa Hay, and Soybeans 44

Small Grains: Barley, Oats, Rye, and Winter Wheat 45

Other Crops: Seed Soybeans, Food Soybeans, Navy Beans, and Sunflowers 46

Other Crops: Perennial Rye Grass, Canola, Irrig. Pumpkins, & Irrig. Strawberries 47

Dairy Cows 48-49

Dairy Cows - Organic Production 50

Dairy Cows - Sorted by Herd Size 51

Graphic Summary of Selected Dairy Factors 52

Dairy Cows and Dairy Replacements Combined (All Dairy) 53

Dairy Replacement Heifers 54

Alexandria and Northland Technical & Community College information 55

Ridgewater and St. Cloud Technical & Community College information 56

Dairy Feeders and Dairy Finishing 57 - 58

Beef Finishing 59

Beef Cow-Calf 60

Beef Cow-Calf - Sorted by Herd Size 61

Hogs, Finish Feeder Pigs & Weaning to Finish 62-63

Enterprise Trend Summary 64

2015 Northern Minnesota Annual Report Page 1 Farm Business Management Education Programs

Northern Minnesota Financial

Information

Statewide Livestock

Enterprises

Northern Minnesota

Crop Enterprises


2015 Annual Report – Executive Summary

The 2015 farm year can best be described as a great production year, with significantly reduced farm earnings. Crop yields and livestock production were at or near all-time records. On the down side, prices of crops and livestock dropped significantly during 2015. The decrease in accrual adjusted farm income was influenced by beginning inventory values that were significantly higher than the actual prices received for crops and livestock at the time of sale. Average net farm income for the 588 farms in the Northern Minnesota database was $37,182 for 2015. This was down drastically (67%) from the $114,095 reported in 2014. Median net farm income was down significantly (48%) as well, decreasing to $23,730 in 2015, compared to $46,104 in 2014. The continued declines in the prices of virtually all major commodities caused Northern Minnesota farm profits to drop to their lowest levels since 2009. Unlike 2014, when strong incomes for most livestock farms strengthened the Northern Minnesota data, most livestock producers suffered major declines in prices and profits in 2015. Profits earned by crop producers inched upward from very low levels of 2014, with record yields offsetting further declines in corn, soybeans, wheat and other crop commodity prices.

Several other key financial measures deteriorated in 2015 for most Northern Minnesota farms. Working capital fell to $138,627 at the end of 2015 compared to $171,051 at the end of 2014, a decrease of 19%. Working Capital shows the dollar amount that current assets can or cannot cover current liabilities. Working capital remains respectable for most operations, but the concern becomes how long farms can handle the current prices received for their crop and livestock products, and the current cost of farm inputs.

Term Debt Coverage is a key financial measure that Ag lenders consider in loan decisions. The 2015 Northern Minnesota average was .88 compared to 1.75 in 2014, and 3.24 in 2012. The major reduction in this factor tells us that farms needed to use working capital to help make all their scheduled payments on intermediate, long-term and personal loans. Working capital was used to offset the shortage of income in the operation in 2015.

With the reduced revenue generated in 2015, the operating expense ratio increased to levels that put the Northern Minnesota database average into the red zone, based on the Financial Scorecard on the back of this report. 80% is the start of the red zone area, and Northern Minnesota farms ended the 2015 year at 81.4%, compared to 73.1% in 2014 and 63% back in 2012. This ratio indicates that for every dollar of farm revenue produced, it took 81.4 cents to cover the annual operating expenses; excluding interest paid, loan payments or depreciation, and family living. When operating expenses take that large of a slice of the gross revenue, cash flow issues are created for most farms.

Trend information for the 2011-2015 Financial Summary can be found on page 4 of this report. A quick look at 2015 can be found on page 5, Year at a Glance. The impact of spending on the farm economy of Northern Minnesota by the average farmer in this report can be found on page 9.

Average Net Farm Income $195,588 $75,243 $114,095 $37,182

Median Net Farm Income $102,641 $27,886 $46,104 $23,730

Financial Factors 2012 2013 2014 2015

Working Capital $235,430 $130,026 $171,051 $138,627

Working Capital as % of Gross 33.9% 27.9% 25.4% 24.7%

Term Debt Coverage Ratio 3.24 1.31 1.75 0.88

Operating Expense Ratio 63.0% 76.2% 73.1% 81.4%

Financial Factors 2012 2013 2014 2015


2015 Annual Report – Executive Summary

Our two major livestock enterprises in Northern Minnesota are Dairy and Beef Cow-Calf operations. On a statewide basis, these enterprises generated a profit in 2015 which was down considerably from near record levels in 2014. Dairy farms generated a Net Return/cow of $289 compared to $1,249 in 2014. This reduction in profit is tied directly to the drop in average price received for milk, which reduced significantly in 2015 to a level of $17.75 per hundredweight; compared to $24.36 per hundredweight in 2014.

Beef Cow/Calf enterprises showed a Net Return of $117 compared to $452 in 2014. Feed costs were lower for both the Beef Cow/Calf and Dairy enterprises in 2015, but the reduced prices more than offset decreased feed costs and modest increases in production levels.

2015 was a great year for crop production in Minnesota. Some isolated areas experienced hail damage or missed some key late growing season rains, but most farms produced one of the best crops ever. The average yield per acre for the northern half of Minnesota was 164 bushels for corn, 40 bushels for soybeans, and 66 bushels for wheat. Even though farms experienced near record yields in 2015, net returns were only modest in soybeans and wheat, and negative returns were seen in Corn. Total direct and overhead expense for the crops listed below showed a modest reduction, due in part to a slight decline in some direct crop inputs.

The chart below displays the 4-year history of selected factors for these crops.

Yield per

Acre

Value per

Unit

Gross

Revenue

/Acre

Dir & Ovhd

Expense

/Acre

Net Return

/Acre

Dir & Ovhd

Expense

/Unit

2012 128.5 $6.38 $832.19 $544.50 $287.69 $4.24

2013 105.4 $4.01 $494.27 $564.51 ($70.24) $5.36

2014 118.2 $3.49 $521.63 $611.16 ($89.53) $5.17

2015 164.2 $3.32 $558.23 $585.59 ($27.36) $3.57

2012 37.0 $13.86 $520.96 $309.50 $211.46 $8.37

2013 30.6 $12.59 $402.48 $310.57 $91.91 $10.15

2014 32.8 $9.78 $342.20 $329.59 $12.61 $10.04

2015 40.1 $8.37 $347.59 $320.92 $26.67 $8.01

2012 59.3 $8.30 $496.23 $342.80 $153.43 $5.87

2013 65.7 $6.32 $422.88 $355.27 $67.61 $5.41

2014 62.4 $5.56 $361.53 $351.33 $10.20 $5.63

2015 66.3 $5.02 $346.93 $330.46 $16.47 $4.99

Rented Land

Corn

Soybeans

Spring

Wheat

2012 2013 2014 2015

Gross Margin $800 $778 $1,295 $864

Feed Cost / Cow $446 $479 $508 $439

Dir & Ovhd Expense/Cow $712 $741 $844 $747

Net Return / Cow $88 $37 $452 $117

Ave Price per CWT calf sold $146.91 $152.83 $212.33 $206.46

Beef Cow‐CalfStatewide MnSCU Data

2012 2013 2014 2015

Gross Margin $4,263 $4,400 $5,618 $4,187

Feed Cost / Cow $2,321 $2,393 $2,430 $2,108

Dir & Ovhd Expense/Cow $3,972 $4,113 $4,369 $3,897

Net Return / Cow $290 $287 $1,249 $289

Average Milk Price $19.47 $20.20 $24.36 $17.75

Dir & Ovhd Expense/Cwt Milk $17.44 $17.81 $18.38 $16.22

Statewide MnSCU DataDairy

2011 2012 2013 2014 2015

Income StatementGross Cash Farm Income 489,148 609,139 595,950 658,798 551,703Total Cash Farm Expense 389,571 473,448 467,633 522,485 469,847Net Cash Farm Income 99,577 135,691 128,317 136,314 81,857Inventory change 45,283 94,606 -16,741 18,383 -5,368Depreciation -29,184 -34,864 -36,037 -40,880 -40,070Net Farm Income From Operations 115,675 195,433 75,539 113,816 36,419Gain or loss on capital sales 1,197 155 -296 279 763Average Net Farm Income 116,872 195,588 75,243 114,095 37,182Median Net Farm Income 66,755 102,641 27,886 46,104 23,730

Profitability (Cost)Rate of Return on Assets 9.6% 13.9% 4.4% 6.4% 1.4%Rate of Return on Equity 14.4% 22.2% 4.5% 8.3% -0.9%Operating Profit Margin 22.1% 29.1% 12.7% 17.8% 4.7%Asset Turnover Rate 43.7% 47.7% 34.6% 36.2% 29.8%

Liquidity & Repayment (end of year)Current Assets 298,668 433,205 320,139 379,735 362,417Current Liabilities 151,495 197,776 190,113 208,684 223,790Current Ratio 1.97 2.19 1.68 1.82 1.62Working capital 147,173 235,430 130,026 171,051 138,627Working capital to gross inc 28.0% 33.9% 27.9% 25.40% 24.70%Term Debt Coverage Ratio 2.47 3.24 1.31 1.75 0.88Replacement coverage ratio 2.10 2.79 1.15 1.50 0.76Term debt to EBITDA - - - 2.45 4.33

Solvency (Market)Number of Farms 395 405 412 566 588Total Assets 1,480,387 1,846,773 1,685,236 2,032,113 2,003,026Total Liabilities 670,483 830,038 785,428 883,164 895,016Net Worth 809,903 1,016,735 899,809 1,148,949 1,108,011Net Worth Change 116,594 174,381 64,982 111,833 30,645Farm Debt to Asset Ratio 47% 47% 44% 44% 47%Total Debt to Asset Ratio 45% 45% 47% 43% 45%Change in total net worth % - - - 11% 3%

Nonfarm InformationNet Nonfarm Income 27,828 24,030 26,161 25,050 28,964Farms Reporting Liv Expenses 49 53 51 88 76Total Family Living Expense 40,784 46,842 43,192 51,248 48,783Total Living, Invest, & Cap Purch 50,363 77,238 60,826 69,840 74,687

Crop AcresTotal Crop Acres 712 836 749 697 688Total Crop Acres Owned 251 299 278 253 248Total Crop Acres Cash Rented 452 521 462 432 428Total Crop Acres Share Rent 9 17 9 12 12Machinery value per crop acre - - - 607 542


Financial Trend SummaryNorthern Minnesota Farm Business Management Data

0

100,000

200,000

300,000

2011 2012 2013 2014 2015

147,173

235,430

130,026171,051

138,627

Working capital

5.0%

20.0%

35.0%

2011 2012 2013 2014 2015

28.0%33.9%

27.9% 25.40%24.70%

Working capital to gross inc

State Your Your

Northern FBM Local Farm Farm Minnesota Data Area Data Goal

588 2031

Farms FarmsIncome Statement

Gross Cash Farm Income $551,703 $766,404 _______ _______ _______

Total Cash Operating Expense $469,847 $657,505 _______ _______ _______

Net Cash Farm Income $81,857 $108,899 _______ _______ _______

Net Operating Profit $76,489 $95,233 _______ _______ _______

Net Farm Income $37,182 $42,877 _______ _______ _______

Median Farm Income $23,730 $25,392 _______ _______ _______

Balance Sheet (Market)

Total Assets - 12/31 $2,003,026 $2,816,577 _______ _______ _______

Total Liabilities - 12/31 $895,016 $1,204,953 _______ _______ _______

Net Worth - 12/31 $1,108,011 $1,611,624 _______ _______ _______

Change in Net Worth $30,645 $35,430 _______ _______ _______

Financial Standards Measures

Working Capital - 12/31 $138,627 $211,908 _______ _______ _______

Debt to Asset Ratio - 12/31 47% 45% _______ _______ _______

Rate of Return on Farm Assets - Cost 1.4% 1.2% _______ _______ _______

Rate of Return on Farm Equity - Cost -0.9% -1.0% _______ _______ _______

Term Debt Coverage Ratio 0.88 0.83 _______ _______ _______

Asset Turnover Rate 29.8% 32.3% _______ _______ _______

Operating Expense Ratio 81.4% 83.1% _______ _______ _______

Interest Expense Ratio 5.0% 4.4% _______ _______ _______

Operator Information

Average Age of the Farmer 46.2 47.8 _______ _______ _______

Average Years Farming 21.4 24.0 _______ _______ _______

Personal Spending & Income

Total Cash Family Living Expense $48,783 $60,798 _______ _______ _______

Total Non Farm Income $28,964 $33,868 _______ _______ _______

Net Farm Income dollars are used to pay for Family Living, Social Security and Income Tax, Retirement Accounts,Medical and Health expenses, and loan principle payments. A positive balance indicates revenue for other uses,while a negative balance indicates a need for revenue from other sources.

The following list shows expenses for the year:

Net Farm Income (+) $37,182 $42,877

Depreciation (+) $40,070 $53,309Family Living (Excl Health/Med) (-) $40,841 $50,446

Social Security and Income Tax (-) $7,181 $13,574

Health and Medical Expense (-) $7,217 $10,577

Retirement Accounts (-) $3,923 $5,462

Principal Payments (-) $56,922 $66,266

Balance (=) -$38,832 -$50,139


Year at a Glance

State Data

Data for the Average Farm

Northern Minnesota

Financial SummaryNorthern Minnesota Farm Business Management Data

(Farms Sorted By Farm Type)

Avg. Of Crop and Crop andAll Farms Crop Dairy Beef Dairy Beef Other

Number of farms 588 181 172 42 25 46 119

Income StatementGross cash farm income 551,703 490,719 713,877 469,074 611,993 456,019 453,142Total cash farm expense 469,847 415,731 587,324 458,126 492,973 409,057 393,490Net cash farm income 81,857 74,988 126,553 10,947 119,020 46,962 59,653Inventory change -5,368 5,997 -3,359 -40,341 -39,320 -11,716 -1,902Depreciation -40,070 -43,318 -44,096 -18,397 -50,638 -35,088 -36,474Net farm income from operations 36,419 37,667 79,098 -47,791 29,062 157 21,277Gain or loss on capital sales 763 972 266 -815 -1,047 94 2,381Average net farm income 37,182 38,639 79,364 -48,607 28,015 251 23,658Median net farm income 23,730 20,993 48,574 -6,576 29,589 11,766 13,367

Profitability (cost)Rate of return on assets 1.4 % 1.3 % 3.4 % -3.9 % 0.6 % -0.5 % 0.9 %Rate of return on equity -0.9 % -0.6 % 2.8 % -19.6 % -2.3 % -4.9 % -2.5 %Operating profit margin 4.7 % 4.0 % 10.4 % -28.1 % 1.9 % -1.9 % 3.5 %Asset turnover rate 29.8 % 33.0 % 32.2 % 13.7 % 32.1 % 26.9 % 25.4 %

Profitability (market)Rate of return on assets 2.1 % 1.8 % 3.4 % -2.1 % 1.8 % 1.8 % 1.7 %Rate of return on equity 0.9 % 0.8 % 3.5 % -12.6 % 0.5 % 0.4 % -0.2 %Operating profit margin 8.3 % 6.6 % 12.5 % -17.5 % 7.2 % 8.7 % 7.8 %Asset turnover rate 24.6 % 26.4 % 27.3 % 11.9 % 24.5 % 20.9 % 21.5 %

Liquidity & Repayment (end of year)Current assets 362,417 464,001 262,688 319,821 282,287 395,590 366,243Current liabilities 223,790 266,026 134,333 318,464 166,008 265,978 244,289Current ratio 1.62 1.74 1.96 1.00 1.70 1.49 1.50Working capital 138,627 197,975 128,355 1,357 116,279 129,612 121,954Working capital to gross inc 24.7 % 38.8 % 17.7 % 0.3 % 19.7 % 27.3 % 26.3 %Term debt coverage ratio 0.88 0.87 1.26 -0.13 0.76 0.60 0.73Replacement coverage ratio 0.76 0.68 1.13 -0.12 0.64 0.47 0.66Term debt to EBITDA 4.33 3.61 3.61 126.41 4.31 6.60 5.40

Solvency (end of year at cost)Number of farms 588 181 172 42 25 46 119Total assets 1,665,278 1,750,226 1,769,848 1,174,917 1,750,619 1,563,522 1,574,214Total liabilities 726,975 700,120 717,098 729,718 707,105 738,827 773,664Net worth 938,303 1,050,107 1,052,750 445,199 1,043,514 824,695 800,550Net worth change 14,662 9,486 49,529 -36,318 -1,447 -7,032 4,583Farm debt to asset ratio 46 % 42 % 43 % 67 % 44 % 48 % 52 %Total debt to asset ratio 44 % 40 % 41 % 62 % 40 % 47 % 49 %Change in earned net worth % 2 % 1 % 5 % -8 % 0 % -1 % 1 %

Solvency (end of year at market)Number of farms 588 181 172 42 25 46 119Total assets 2,003,026 2,164,485 2,065,735 1,356,943 2,236,315 2,004,752 1,844,067Total liabilities 895,016 899,834 871,425 808,150 867,352 954,187 927,828Net worth 1,108,011 1,264,651 1,194,310 548,793 1,368,963 1,050,565 916,239Total net worth change 30,645 23,071 61,186 -21,169 24,845 32,035 19,393Farm debt to asset ratio 47 % 44 % 45 % 64 % 42 % 49 % 53 %Total debt to asset ratio 45 % 42 % 42 % 60 % 39 % 48 % 50 %Change in total net worth % 3 % 2 % 5 % -4 % 2 % 3 % 2 %

Nonfarm InformationNet nonfarm income 28,964 35,095 17,299 46,859 12,670 37,157 30,373Farms reporting living expenses 76 18 23 4 3 5 22Total family living expense 48,783 50,122 46,614 29,461 - 59,099 50,682Total living, invest, cap. purch 74,687 67,655 54,793 21,857 - 109,679 104,996

Crop AcresTotal crop acres 688 1,241 338 393 616 724 449Total crop acres owned 248 424 148 112 219 247 176Total crop acres cash rented 428 793 185 279 397 459 265Total crop acres share rented 12 24 5 1 - 17 7Machinery value per crop acre 611 447 1,031 554 923 563 811



Selected Factors by Type of Farm

Ave. Crop Dairy BeefDairyCrop

BeefCrop

Other

Ave NFI 37,182 38,639 79,364 -48,607 28,015 251 23,658

Median NFI 23,730 20,993 48,574 -6,576 29,589 11,766 13,367

-60000

10000

80000

Net Farm Income


BeefCrop

Other

NW Change 30,645 23,071 61,186 -21,169 24,845 32,035 19,393

-25000

25000

75000

Change in Net Worth


BeefCrop

Other

ROA 1.4 1.3 3.4 -3.9 0.6 -0.5 0.9

ROE -0.9 -0.6 2.8 -19.6 -2.3 -4.9 -2.5

-6

-4

-2

0

2

4

Rate of Return on Assets & Equity (%)


BeefCrop

Other

Liabilities 895,016 899,834 871,425 808,150 867,352 954,187 927,828

Equity 1,108,010 1,264,651 1,194,310 548,793 1,368,963 1,050,565 916,239

0

300000

600000

900000

1200000

1500000

1800000

2100000

2400000

Total Assets shown as Equity & Liabilities


BeefCrop

Other

Debt to Asset 45.0 42.0 42.0 60.0 39.0 48.0 50.0

10

30

50

70

Ending Debt to Asset Ratio (%)


BeefCrop

Other

Wk Cap 138,627 197,975 128,355 1,357 116,279 129,612 121,954

WC as % GFI 24.7% 38.8% 17.7% 0.3% 19.7% 27.3% 26.3%

0.0%

25.0%

50.0%

75.0%

100.0%

0

50000

100000

150000

200000

Working Capital


(Farms Sorted By Number of Years Farming)

Avg. OfAll Farms 10 or Less 11 - 20 21 - 30 31 - 40 Over 40

Number of farms 588 155 120 99 136 78

Income StatementGross cash farm income 551,703 329,782 465,553 660,525 838,696 486,723Total cash farm expense 469,847 290,652 402,553 555,534 709,906 402,145Net cash farm income 81,857 39,129 63,000 104,991 128,790 84,579Inventory change -5,368 11,295 -1,056 -11,963 -18,325 -14,150Depreciation -40,070 -19,027 -32,591 -49,958 -61,336 -43,763Net farm income from operations 36,419 31,396 29,353 43,069 49,129 26,666Gain or loss on capital sales 763 -44 -227 3,889 651 119Average net farm income 37,182 31,352 29,126 46,958 49,780 26,786Median net farm income 23,730 13,367 36,972 34,867 23,700 20,131

Profitability (cost)Rate of return on assets 1.4 % 2.6 % 1.4 % 1.4 % 1.3 % 0.5 %Rate of return on equity -0.9 % 1.1 % -1.7 % -0.7 % -0.8 % -1.8 %Operating profit margin 4.7 % 7.6 % 4.7 % 4.8 % 4.3 % 1.9 %Asset turnover rate 29.8 % 34.6 % 30.1 % 28.5 % 29.4 % 27.8 %

Profitability (market)Rate of return on assets 2.1 % 2.9 % 2.9 % 2.0 % 1.8 % 1.1 %Rate of return on equity 0.9 % 2.4 % 2.1 % 1.0 % 0.5 % -0.2 %Operating profit margin 8.3 % 9.4 % 11.3 % 8.8 % 7.3 % 5.2 %Asset turnover rate 24.6 % 31.3 % 25.4 % 22.8 % 24.2 % 21.7 %

Liquidity & Repayment (end of year)Current assets 362,417 191,056 278,840 391,415 602,885 375,437Current liabilities 223,790 134,946 213,031 230,883 330,714 221,459Current ratio 1.62 1.42 1.31 1.70 1.82 1.70Working capital 138,627 56,110 65,810 160,533 272,171 153,978Working capital to gross inc 24.7 % 15.9 % 13.9 % 24.1 % 32.6 % 30.9 %Term debt coverage ratio 0.88 1.19 0.80 0.79 0.87 0.79Replacement coverage ratio 0.76 1.09 0.73 0.67 0.72 0.64Term debt to EBITDA 4.33 4.81 4.70 4.52 3.83 4.22

Solvency (end of year at cost)Number of farms 588 155 120 99 136 78Total assets 1,665,278 916,274 1,391,637 2,030,301 2,443,756 1,754,021Total liabilities 726,975 519,161 716,025 831,805 940,355 651,683Net worth 938,303 397,114 675,612 1,198,496 1,503,401 1,102,338Net worth change 14,662 32,646 12,496 12,601 10,532 -7,926Farm debt to asset ratio 46 % 59 % 54 % 43 % 41 % 41 %Total debt to asset ratio 44 % 57 % 51 % 41 % 38 % 37 %Change in earned net worth % 2 % 9 % 2 % 1 % 1 % -1 %

Solvency (end of year at market)Number of farms 588 155 120 99 136 78Total assets 2,003,026 1,006,228 1,642,568 2,521,159 2,951,673 2,226,716Total liabilities 895,016 570,768 825,805 1,067,232 1,218,493 863,236Net worth 1,108,011 435,460 816,764 1,453,927 1,733,180 1,363,479Total net worth change 30,645 37,582 37,158 34,001 28,423 6,453Farm debt to asset ratio 47 % 59 % 53 % 45 % 43 % 42 %Total debt to asset ratio 45 % 57 % 50 % 42 % 41 % 39 %Change in total net worth % 3 % 9 % 5 % 2 % 2 % 0 %

Nonfarm InformationNet nonfarm income 28,964 33,426 33,438 20,467 26,297 28,650Farms reporting living expenses 76 20 23 13 13 7Total family living expense 48,783 37,874 48,430 61,028 47,427 60,883Total living, invest, cap. purch 74,687 52,413 70,260 86,594 70,231 139,035

Crop AcresTotal crop acres 688 432 529 712 1,001 866Total crop acres owned 248 89 161 267 397 414Total crop acres cash rented 428 341 357 435 591 419Total crop acres share rented 12 3 11 10 12 33Machinery value per crop acre 611 426 587 770 660 549


Average Money Spent by Each Farmer in the Greater Community: $628,904

Average Money Spent by Each Farmer in a 30 Yr Career: $18,867,120Money Spent in Community by 588 Farmers: $369,795,552

2015 Report Overview

Farm Business Management Education has been a part of agricultural education programs in Minnesota since 1953. FBM Programs are now an integral part of the Minnesota State Colleges and University System, delivered through eighttwo-year colleges. In 2015, the Northern Minnesota Annual Report is an expansion of the 13-year partnership betweenNorthland Community & Technical College and Central Lakes College Farm Business Management Programs; to include Alexandria Technical & Community College, Ridgewater College, and St. Cloud Technical & Community Colleges.

This report was prepared under the direction of Ron Dvergsten and DelRay Lecy through AgCentric, Northern Center of

Excellence for Agriculture. A special thank you goes to Keith Olander, AgCentric Director & Central Lakes College Dean, for his leadership and Rosemary Gustafson, Northland Community & Technical College, for her assistance.

The tables in this report were created using FINPACK and RankEm Central, copyrighted software of the Center for FarmFinancial Management, University of Minnesota.

The financial portion of the report, found in the first 26 pages, uses a standard format for each table. Data fromthe analysis system is printed in a four column format, which includes: Average, Low, Middle, & High. The High, Middle, & Low ranges are calculated based on a 20% slice of the farms in the total group.

The enterprise tables begin on page 30. Each of these tables consist of: a size indicator, a total and per unit income,direct & overhead expenses, and other information. Costs which are considered operating, whether easily assigned or are allocated, are listed as Direct Expenses. Costs which are general in nature, whether fixed or variable, are listed as Overhead Expenses.

The criteria for determining the 20% categories in each area are listed below:Analysis Section Criteria to determine the "20%" categories

Financial Net Farm IncomeCrops Return to Overhead

Statewide Livestock Return to Overhead


$43,788 Fdr Lvstk & Cust Wk

7.0% $95,157 Seed, Fert, Chem

15.1%

$20,216 Other Crop Exp

3.2%

$82,339 Purchased Feed

13.1%

$33,531 Other Lvstk Exp

5.3%

$19,821 Gen Farm Exp

3.2%

$58,235 Fuel & Repairs

9.3%

$32,844 Hired Labor

5.2%

$68,409 Interest & Leases

10.9%

$15,507 RE Taxes & Utilities

2.5%

$95,951 Capital Purchases

15.3%

$63,106 Family Living

10.0%

Each farmer, on average, spent $628,904 in the Greater Community in 2015

Page 10


(Farms Sorted By Gross Farm Income)

Less than 100,001 - 250,001 - 500,001 - 1,000,001- Over100,000 250,000 500,000 1,000,000 2,000,000 2,000,000

Number of farms 104 136 153 112 64 19

Income StatementGross cash farm income 50,349 171,086 367,295 704,632 1,420,808 3,676,363Total cash farm expense 56,119 149,947 310,798 599,367 1,216,029 3,028,083Net cash farm income -5,770 21,139 56,497 105,265 204,779 648,280Inventory change 6,484 9,531 11,759 -13,146 -27,732 -193,624Depreciation -6,664 -14,732 -27,630 -58,957 -102,288 -183,563Net farm income from operations -5,950 15,938 40,626 33,161 74,760 271,094Gain or loss on capital sales 28 1,422 8 -90 3,579 1,699Average net farm income -5,922 17,360 40,634 33,071 78,339 272,792Median net farm income -5,360 19,683 47,776 42,776 103,301 171,131

Profitability (cost)Rate of return on assets -3.5 % 0.8 % 1.8 % 0.7 % 1.6 % 3.3 %Rate of return on equity -13.0 % -3.1 % 0.0 % -2.2 % -0.7 % 2.7 %Operating profit margin -23.0 % 3.7 % 6.1 % 2.5 % 4.7 % 10.0 %Asset turnover rate 15.3 % 22.7 % 30.0 % 29.8 % 33.1 % 33.3 %

Profitability (market)Rate of return on assets -2.2 % 1.1 % 2.3 % 2.0 % 2.3 % 3.6 %Rate of return on equity -7.4 % -1.1 % 1.5 % 0.8 % 1.3 % 3.6 %Operating profit margin -18.9 % 6.5 % 9.6 % 8.2 % 7.9 % 11.7 %Asset turnover rate 11.5 % 17.2 % 24.0 % 23.8 % 28.6 % 30.4 %

Liquidity & Repayment (end of year)Current assets 46,975 166,472 236,392 497,783 946,704 1,740,353Current liabilities 36,246 95,383 140,083 341,584 587,390 924,418Current ratio 1.30 1.75 1.69 1.46 1.61 1.88Working capital 10,729 71,089 96,309 156,199 359,315 815,935Working capital to gross inc 18.5 % 37.7 % 25.0 % 22.0 % 24.8 % 23.1 %Term debt coverage ratio 1.05 0.97 1.04 0.67 0.74 1.25Replacement coverage ratio 0.88 0.86 0.85 0.55 0.68 1.04Term debt to EBITDA 18.90 6.44 3.87 4.35 4.10 2.90

Solvency (end of year at cost)Number of farms 104 136 153 112 64 19Total assets 449,558 858,598 1,265,085 2,237,184 3,520,992 7,694,411Total liabilities 220,449 437,023 531,268 1,004,475 1,638,650 2,444,233Net worth 229,109 421,574 733,816 1,232,709 1,882,342 5,250,178Net worth change 12,056 20,901 17,777 -11,190 -1,670 166,584Farm debt to asset ratio 57 % 55 % 46 % 48 % 47 % 33 %Total debt to asset ratio 49 % 51 % 42 % 45 % 47 % 32 %Change in earned net worth % 6 % 5 % 2 % -1 % 0 % 3 %

Solvency (end of year at market)Number of farms 104 136 153 112 64 19Total assets 569,722 1,099,066 1,553,992 2,776,892 4,067,775 8,418,175Total liabilities 249,180 506,150 644,702 1,251,371 2,057,190 3,213,942Net worth 320,542 592,916 909,290 1,525,521 2,010,585 5,204,232Total net worth change 14,531 25,230 29,489 22,528 32,801 207,493Farm debt to asset ratio 49 % 49 % 45 % 48 % 51 % 39 %Total debt to asset ratio 44 % 46 % 41 % 45 % 51 % 38 %Change in total net worth % 5 % 4 % 3 % 1 % 2 % 4 %

Nonfarm InformationNet nonfarm income 47,814 34,556 22,070 20,218 16,518 34,753Farms reporting living expenses 18 15 25 13 4 1Total family living expense 43,617 40,428 48,465 58,695 60,202 -Total living, invest, cap. purch 48,917 72,823 58,459 85,567 194,460 -

Crop AcresTotal crop acres 133 327 509 1,071 1,636 2,306Total crop acres owned 57 168 189 424 470 554Total crop acres cash rented 71 156 313 619 1,142 1,723Total crop acres share rented 5 2 6 28 23 29Machinery value per crop acre 554 539 563 598 595 857


Avg. Of

All Farms Low 20% 40 - 60% High 20%

Number of farms 588 117 117 118

Sale of CropsBarley 2,805 5,440 389 6,271Beans, Edible 5,469 9,905 1,772 7,157Corn 43,731 67,293 24,338 56,479Corn Silage 794 409 280 2,529Hay, Alfalfa 2,771 5,889 1,888 1,958Hay, Other 1,265 3,039 1,165 100Fruit and Vegetable Crops 2,067 638 3,099 -Organic Crops 1,499 - - 6,992Soybeans 62,965 66,808 41,634 112,015Soybeans Food 550 1,076 342 639Sunflowers 1,452 3,561 591 1,064Oats 760 872 1,131 325Wheat, Spring 36,456 33,400 19,028 78,843Wheat, Winter 402 211 56 1,474Grass Seed 3,902 3,074 - 12,139Other Crop Enterprises 5,923 4,832 2,113 16,372Miscellaneous crop income 432 235 206 10

Total Crop Sales 173,243 206,682 98,032 304,367

Sale of LivestockBeef Cow-Calf, Beef Calves 10,730 11,174 10,717 18,877Beef, Backgrounding 16,055 41,274 11,145 13,515Beef, Finishing 9,608 20,522 4,421 5,975Other Beef Enterprises 2,919 8,881 375 1,528Dairy, Milk 195,674 129,620 77,047 515,228Dairy Calves 5,671 2,934 2,179 14,592Dairy Heifers (for sale) 2,011 4,310 296 2,636Dairy Feeders & Backgrounding 13,302 37,637 4,155 6,010Dairy Finishing 22,808 33,408 15,095 38,759Hogs, Weaning to Finish 2,647 12,916 - -Other Livestock Enterprises 1,015 32 3,544 -Cull breeding livestock 18,290 13,478 9,784 42,672Misc. livestock income 1,209 1,369 639 1,145

Total Livestock & Product Sales 301,939 317,555 139,397 660,937

Other farm incomeCrop government payments 12,773 14,767 6,877 22,784CRP payments 417 707 243 507Livestock govt payments 494 290 - 374Other government payments 6,821 6,330 4,447 13,624Custom work income 12,550 24,859 4,700 22,667Patronage dividends, cash 5,742 5,327 2,788 12,856Insurance income 18,677 27,521 7,711 37,600Contract livestock income 4,428 - 1,171 19,211Other farm income 14,619 16,295 11,277 27,160

Total Other Farm Income 76,521 96,096 39,214 156,783

Gross Cash Farm Income 551,703 620,333 276,643 1,122,087

Page 12 Farm Business Management Education Programs

Farm Income StatementNorthern Minnesota Farm Business Management Data

(Farms Sorted By Net Farm Income)

2015 Northern Minnesota Annual Report

Average Low 20% 40 - 60% High 20%


Direct Crop ExpenseSeed 33,395 39,782 19,036 55,681Fertilizer 44,339 53,986 22,871 84,849Crop chemicals 17,423 22,626 7,854 30,891Crop insurance 8,165 9,234 4,922 13,675Drying Expense 1,378 2106 604 1,998Other direct crop expenses 10,673 11,003 7,140 18,362 Total Direct Crop Expense 115,373 138,737 62,427 205,456

Direct Livestock Expense

Feeder livestock purchase 36,125 86665 18,377 32,360Purchased feed 82,339 78,009 37,120 192,412Breeding fees 2,470 1856 958 5,823Veterinary 7,170 8,538 3,176 15,395Supplies and related Livestock expenses 11,521 12,171 6,110 24,555Contract production exp. 2,241 1,913 1,933 5,012Livestock hauling and trucking 2,739 2,697 2,019 4,966Livestock marketing 2,560 2,215 1,698 5,374Bedding 4,830 4,677 1,326 11,669 Total Direct Livestock Expense 151,995 198,741 72,717 297,566

Other Farm Expense

Interest 27,045 42,820 17,222 38,265CCC Buybacks 1,257 226 - 5,847Fuel & oil 21,260 26,694 11,943 39,962Repairs 36,975 44,776 20,981 68,813Custom hire 7,663 7,846 3,526 18,636Hired labor 32,844 33,402 9,947 82,635Land rent 34,453 50,365 16,699 61,593Machinery & bldg leases 6,911 8,360 3,492 14,754Real estate taxes 4,966 5,675 3,239 8,072Farm insurance 8,523 10,617 5,548 14,621Utilities 10,541 10,524 6,798 20,138Dues & professional fees 2,796 3,621 1,445 4,810Miscellaneous 7,245 10,669 4,512 9,398 Total Other Farm Expense 202,479 255,595 105,352 387,544Total cash expense 469,847 593,073 240,496 890,566

Net cash farm income 81,856 27,260 36,147 231,521

Inventory Changes Prepaids and supplies -7,871 -18,074 -4,065 -5,422Accounts receivable -14,716 -16,293 -5327 -34,894Hedging acct. & Oth Cur Assets 928 -884 455 5,937Crops and feed 25,421 16,390 17,428 55,642Market livestock -6,647 -35,877 770 6,359Breeding livestock 1,364 -6,694 3,055 10,406Accounts payable -6,050 -20,315 -3,902 -3,047Accrued Interest & other assets 2,204 -838 1,859 7,033 Total inventory change -5,367 -82,585 10,273 42,014Net operating profit 76,489 -55,325 46,420 273,535

DepreciationMachinery and equipment -29,680 -35,884 -16,263 -55,780Titled vehicles -2,434 -3,117 -1,682 -3,534Buildings and improvements -7,957 -10,057 -4,186 -15,575 Total depreciation -40,070 -49,058 -22,131 -74,889Net farm income from operations 36,419 -104,383 24,289 198,646Gain or loss on capital sales 763 -479 -153 4,104Net farm income 37,182 -104,862 24,136 202,750


Farm Income StatementNorthern Minnesota Farm Business Management Data


Balance Sheet at Cost ValuesNorthern Minnesota Farm Business Management Data


Avg. OfAll Farms Low 20% 40 - 60% High 20%


AssetsCurrent Farm Assets

Cash and checking balance 20,986 9,679 9,649 53,945Prepaid expenses & supplies 35,050 24,531 12,836 95,306Growing crops 1,972 1,826 397 5,538Accounts receivable 20,755 20,298 9,500 48,266Hedging accounts 751 468 85 2,658Crops held for sale or feed 203,617 198,935 111,599 431,680Crops under government loan 13,276 25,530 5,958 15,469Market livestock held for sale 54,494 101,028 38,040 72,830Other current assets 11,515 47,498 1,668 6,195

Total current farm assets 362,417 429,792 189,732 731,888

Intermediate Farm AssetsBreeding livestock 144,024 116,253 86,839 314,879Machinery and equipment 367,642 428,498 202,260 697,031Titled vehicles 26,655 32,071 17,841 40,009Other intermediate assets 22,738 18,553 9,718 52,984

Total intermediate farm assets 561,059 595,375 316,660 1,104,903

Long Term Farm AssetsFarm land 352,812 382,140 288,300 561,188Buildings and improvements 198,698 197,851 129,419 396,234Other long-term assets 31,321 35,177 14,722 63,411

Total long-term farm assets 582,831 615,168 432,442 1,020,833Total Farm Assets 1,506,307 1,640,335 938,833 2,857,623

Total Nonfarm Assets 158,971 176,842 130,706 192,406Total Assets 1,665,278 1,817,177 1,069,539 3,050,030

LiabilitiesCurrent Farm Liabilities

Accrued interest 6,814 13,767 4,342 7,427Accounts payable 24,450 52,996 13,394 30,892Current notes 127,829 228,084 67,078 155,525Government crop loans 7,775 14,493 3,785 8,836Principal due on term debt 56,922 74,839 35,321 90,246

Total current farm liabilities 223,790 384,179 123,920 292,926

Total intermediate farm liabs 153,603 210,761 96,849 245,297Total long term farm liabilities 317,526 437,782 242,565 433,023Total farm liabilities 694,920 1,032,722 463,334 971,247

Total nonfarm liabilities 32,055 37,227 19,437 36,952Total liabilities 726,975 1,069,949 482,771 1,008,198

Net worth (farm and nonfarm) 938,303 747,227 586,768 2,041,831Net worth change 14,662 -109,146 18,553 133,136Percent net worth change 2 % -13 % 3 % 7 %

Ratio AnalysisCurrent farm liabilities / assets 62 % 89 % 65 % 40 %Intermediate farm liab. / assets 27 % 35 % 31 % 22 %Long term farm liab. / assets 54 % 71 % 56 % 42 %Total debt to asset ratio 44 % 59 % 45 % 33 %


Balance Sheet at Market ValuesNorthern Minnesota Farm Business Management Data




AssetsCurrent Farm Assets

Cash and checking balance 20,986 9,679 9,649 53,945Prepaid expenses & supplies 35,050 24,531 12,836 95,306Growing crops 1,972 1,826 397 5,538Accounts receivable 20,755 20,298 9,500 48,266Hedging accounts 751 468 85 2,658Crops held for sale or feed 203,617 198,935 111,599 431,680Crops under government loan 13,276 25,530 5,958 15,469Market livestock held for sale 54,494 101,028 38,040 72,830Other current assets 11,515 47,498 1,668 6,195

Total current farm assets 362,417 429,792 189,732 731,888

Intermediate Farm AssetsBreeding livestock 146,173 118,321 87,831 316,486Machinery and equipment 416,855 488,413 236,443 762,694Titled vehicles 29,552 37,407 19,442 44,289Other intermediate assets 23,792 18,328 9,759 57,633

Total intermediate farm assets 616,372 662,469 353,475 1,181,102

Long Term Farm AssetsFarm land 592,376 634,376 475,359 891,728Buildings and improvements 221,019 225,492 144,508 420,384Other long-term assets 39,530 68,887 15,492 69,711

Total long-term farm assets 852,925 928,755 635,358 1,381,823Total Farm Assets 1,831,714 2,021,016 1,178,565 3,294,813

Total Nonfarm Assets 171,312 188,943 143,592 209,751Total Assets 2,003,026 2,209,958 1,322,157 3,504,564

LiabilitiesCurrent Farm Liabilities

Accrued interest 6,814 13,767 4,342 7,427Accounts payable 24,450 52,996 13,394 30,892Current notes 127,829 228,084 67,078 155,525Government crop loans 7,775 14,493 3,785 8,836Principal due on term debt 56,922 74,839 35,321 90,246

Total current farm liabilities 223,790 384,179 123,920 292,926

Total intermediate farm liabs 153,603 210,761 96,849 245,297Total long term farm liabilities 317,526 437,782 242,565 433,023Total farm liabilities 694,920 1,032,722 463,334 971,247

Total nonfarm liabilities 32,055 37,227 19,437 36,952Total liabs excluding deferreds 726,975 1,069,949 482,771 1,008,198Total deferred liabilities 168,041 182,727 99,387 325,892Total liabilities 895,016 1,252,677 582,158 1,334,090

Retained earnings 938,303 747,227 586,768 2,041,831Market valuation equity 169,708 210,055 153,231 128,642Net worth (farm and nonfarm) 1,108,011 957,282 739,999 2,170,474Net worth excluding deferreds 1,276,052 1,140,009 839,386 2,496,366Net worth change 30,645 -74,890 32,784 138,386Percent net worth change 3 % -7 % 5 % 7 %

Ratio AnalysisCurrent farm liabilities / assets 62 % 89 % 65 % 40 %Intermediate farm liab. / assets 25 % 32 % 27 % 21 %Long term farm liab. / assets 37 % 47 % 38 % 31 %Total debt to asset ratio 45 % 57 % 44 % 38 %Debt to assets excl deferreds 36 % 48 % 37 % 29 %



Financial Guideline Measures

The Farm Financial Standards Task Force recommended the use of these financial measures to evaluate a farm’s financial position and financial performance. These measures are grouped by: Liquidity, Solvency, Profitability, Repayment Capacity, and Efficiency. Liquidity Liquidity is the ability of the farm business to meet financial obligations in a timely manner, without disrupting normal business operations. Current Ratio: The current ratio shows the value of current assets relative to current liabilities. It measures the extent current farm assets, if liquidated, would cover liabilities that are due during the next 12 months. The higher the ratio, the safer the short term position. Working Capital: Working capital shows the dollar amount that current assets can or cannot cover current liabilities. It approximates the amount of capital available to purchase crop and livestock inputs and equipment necessary to produce farm products. The amount of working capital considered adequate must be related to the size of the farm business. Working Capital to Gross Revenues: Measures operating capital available against the size of the business.

Solvency Solvency is important in evaluating the risk position of the farm and family and in considering future borrowing capacity. Solvency measures the ability of the business to pay off all debts if liquidated. Farm Debt To Asset Ratio: The farm debt to asset ratio measures the financial position or solvency of the farm or ranch by comparing the total liabilities to the total assets. It measures the portion of the farm assets that have debt against them. A higher ratio is considered an indicator of greater financial risk. Farm Equity To Asset Ratio: The farm equity to asset ratio measures the farm equity relative to the value of the farm assets. It measures the proportion of the farm assets financed by the owner’s equity whereas the debt to asset ratio measured the proportion of farm assets financed by debt. Farm Debt To Equity Ratio: The farm debt to equity ratio measures the amount of farm debt relative to the amount of farm equity. It measures the amount of debt the farm has for every dollar of equity. Profitability Profitability is the measure of the value of goods produced by the business in relation to the cost of resources used in the production. Profitability calculated on a cost basis does not consider changes in market valuation of capital assets such as machinery and breeding livestock. Rate of Return on Assets: Rate of return on assets is, in effect, the interest rate your farm earned in the past year on all money invested in the business. If assets are valued at market value, the rate of return on investment can be looked at as the “opportunity cost” of investing money in the farm instead of alternative investments. If assets are valued at cost (cost less depreciation), the rate of return represents the actual return on the average dollar invested in the business. Rate of Return on Equity: Rate of return on equity is, in effect, the interest rate your investment in the business earned in the past year. If assets are valued at market value, this return can be compared with returns available if the assets were liquidated and invested in alternative investments. If assets are valued at cost, this represents the actual return to the amount of equity capital you have invested in the farm business. If your return on assets is higher than your average interest rate, your return on equity will be still higher, reflecting the fact that there are residual returns to equity capital after paying all interest expense. This is positive use of financial leverage. If your return on assets is lower than your average interest rate, your return on equity will be still lower, reflecting the fact that borrowed capital did not earn enough to pay its interest cost. This is negative financial leverage. Profitability becomes a key concern when substantial debt capital is used in the business.


Financial Guideline Measures

Net Farm Income: Net farm income represents the returns to labor, management, and equity capital invested in the business. Without income from other sources, or appreciation of capital asset values, net farm income must cover family living expenses and taxes, or net worth will decrease. Operating Profit Margin: The operating profit margin is a measure of the profit margin from the employment of assets. It measures how effectively you are employing assets relative to the value of output produced. Low prices, high operating expenses, or production problems are all possible causes of a low operating profit margin. EBITDA: This factor stands for: Earnings Before Interest, Taxes, Depreciation and Amortization. This represents a measure of earnings available for debt repayment. Repayment Capacity Repayment capacity shows the borrower’s ability to repay term debts (longer than one year) on time. This includes non-farm income, and is therefore not a measure of business performance alone. Capital Debt Repayment Capacity: Measures the amount generated from farm and non-farm sources, to cover debt repayment and capital replacement. Capital Debt Repayment Margin: The amount of money remaining after all operating expenses, taxes, family living costs, and scheduled debt payments have been made. It is the money left, after paying all expenses, which is available for purchasing/financing new machinery, equipment, land or livestock. Replacement Margin: The replacement margin is the amount of income remaining after paying principal and interest on term loans and unfunded (cash) capital purchases.

Term Debt Coverage Ratio: The term debt coverage ratio measures the ability of the business to cover all term debt payments. A number less than 100 percent indicates that the business, plus non-farm income, is not generating sufficient cash to meet all of the debt payments, after family living expenses and taxes have been paid. A number greater than 100 indicates the business is generating sufficient cash to pay all term debt obligations with some surplus margin remaining. Replacement Margin Coverage Ratio: This represents the ability to term debt and unfunded capital purchases. A ratio under 1.0 indicated that you did not generate enough income to cover term debt payments and unfunded capital purchases.

Efficiency These measures reflect the relationships between expense and income items to revenue and the efficiency of the farm business with regard to the use of cash and capital assets. Asset Turnover: Asset turnover is a measure of how efficiently assets are used in the business. A farm with good operating profit margin and asset turnover will show a strong rate of return on farm assets. If operating profit margin is low, the asset turnover rate must be strong, or vice versa, to maintain the rate of return on assets.

Operating Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to pay the operating expenses. Operating expenses do not include interest or depreciation expense.

Depreciation Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to cover the depreciation expense.

Interest Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to pay farm interest expenses.

Net Farm Income Ratio: The ratio indicates the percent of the gross farm income, which remains after all expenses.

Avg. Of All Farms Low 20% 40 - 60% High 20%


Liquidity

Current ratio 1.62 1.12 1.53 2.50Working capital 138,627 45,613 65,811 438,961Working capital to gross inc. 24.7% 7.9% 22.3% 37.4%

Solvency (market)

Farm debt to asset ratio 47% 60% 48% 39%Farm equity to asset ratio 53% 40% 52% 61%Farm debt to equity ratio 0.89 1.50 0.91 0.65

Profitability (cost)

Rate of return on farm assets 1.4% -6.2% 1.2% 5.9%Rate of return on farm equity -0.9% -22.1% -1.4% 6.9%Operating profit margin 4.7% -25.0% 4.5% 17.5%Net farm income 37,182 -104,862 24,136 202,750

EBIDTA 104,332 -10,711 63,628 312,504

Repayment Capacity Capital debt repayment capacity 70,274 -37,110 47,456 235,678Capital debt repayment margin -9,279 -134,422 2,030 101,229Replacement margin -22,698 -147,120 -6,923 74,457Term debt coverage ratio 0.88 -0.38 1.04 1.75Replacement coverage ratio 0.76 -0.34 0.87 1.46

Efficiency

Asset turnover rate (cost) 29.8% 24.9% 26.1% 33.9%Operating expense ratio 81.4% 101.9% 78.4% 73.4%Depreciation expense ratio 7.1% 8.5% 7.5% 6.4%Interest expense ratio 5.0% 7.7% 5.8% 3.3%Net farm income ratio 6.6% -18.1% 8.2% 17.3%


Financial Standards Measures


Operating Profit Margin X Asset Turnover Rate = Rate of Return on Farm Assets

Northern Minnesota Farm Business Management Data

-4.0

1.0

6.0

11.0

16.0

2011 2012 2013 2014 2015

9.6

13.9

4.46.4

1.4

Pe

rce

nt

Rate of Return on Assets

-4

6

16

26

36

2011 2012 2013 2014 2015

22.1

29.1

12.717.8

4.7

Pe

rce

nt

Operating Profit Margin

15

35

55

2011 2012 2013 2014 2015

43.747.7

34.6 36.229.8

Pe

rce

nt

Asset Turnover Rate

Below is a summary of the low, average, and high farms using the 21 Financial Standards Measures. The numbers listed

below are intended to provide a general overview of the farm situation for the current year and over a five year period.

The current year data provides a shapshot of the conditions that represent the present while the five year data provides a

longer term look at these factors to enable their use in potential decision making activities.

For additional information, please see the back cover of this report. A "Financial Scorecard" is provided in color for your use.

Evaluation Chart2015 5 Yr Ave 2015 5 Yr Ave 2015 5 Yr Ave 2015 5 Yr Ave

Liquidity

Current Ratio 1.12 1.00 1.62 1.86 2.50 2.46

Working Capital $ 45,613 6,381 138,627 164,461 438,961 530,709

Working Capital to Gross Inc. % 7.9% 0.3% 24.7% 28.0% 37.4% 36.8%

Solvency (Market)

Farm Debt to Asset Ratio % 60% 57% 47% 46% 39% 40%

Farm Equity to Asset Ratio % 40% 43% 53% 54% 61% 60%

Farm Debt to Equity Ratio % 1.5 1.36 0.89 0.84 0.65 0.68

Profitability (Cost)

Rate of Return on Farm Assets % -6.2% -5.2% 1.4% 7.1% 5.9% 12.7%

Rate of Return on Farm Equity % -22.1% -22.0% -0.9% 9.7% 6.9% 17.9%

Operating Profit Margin % -25.0% -20.1% 4.7% 17.3% 17.5% 27.4%

Net Farm Income $ -104,862 -57,922 37,182 107,796 202,750 400,078

EBIDTA $ -10,711 2,093 104,332 169,752 312,504 521,338

Repayment Capacity (Accrual)

Capital Debt Repayment Cap. $ -37,110 -14,172 70,274 131,940 235,678 429,009

Capital Debt Repayment Margin $ -134,422 -78,539 -9,279 61,106 101,229 290,626

Replacement Margin $ -147,120 -87,698 -22,698 49,671 74,457 266,889

Term Debt Coverage Ratio -0.38 -0.09 0.88 1.93 1.75 3.14

Replacement Coverage Ratio -0.34 -0.08 0.76 1.66 1.46 2.67

Efficiency

Asset Turnover Rate (Cost) % 24.9% 25.9% 29.8% 38.4% 33.9% 45.0%

Operating Expense Ratio % 101.9% 97.8% 81.4% 72.3% 73.4% 65.9%

Depreciation Expense Ratio % 8.5% 8.5% 7.1% 6.0% 6.4% 5.4%

Interest Expense Ratio % 7.7% 8.4% 5.0% 4.3% 3.3% 2.9%

Net Farm Income Ratio % -18.1% -15.1% 6.6% 17.4% 17.3% 26.0%


How does your Farm Stack Up?

Low Farms Average High Farms Your Farm


Profitability MeasuresNorthern Minnesota Farm Business Management Data




Profitability (assets valued at cost)Net farm income from operations 36,419 -104,383 24,288 198,646Rate of return on assets 1.4 % -6.2 % 1.2 % 5.9 %Rate of return on equity -0.9 % -22.1 % -1.4 % 6.9 %Operating profit margin 4.7 % -25.0 % 4.5 % 17.5 %Asset turnover rate 29.8 % 24.9 % 26.1 % 33.9 %

Farm interest expense 27,843 44,614 17,208 38,969Value of operator lbr and mgmt. 43,447 42,814 30,890 72,238Return on farm assets 20,814 -102,583 10,606 165,377Average farm assets 1,479,257 1,648,526 911,964 2,789,580Return on farm equity -7,028 -147,197 -6,602 126,408Average farm equity 807,974 664,967 468,734 1,826,619Value of farm production 441,427 410,669 237,772 946,925



Profitability (assets valued at market)Net farm income from operations 52,406 -69,247 37,904 203,609Rate of return on assets 2.1 % -3.3 % 2.1 % 5.3 %Rate of return on equity 0.9 % -13.2 % 1.2 % 6.8 %Operating profit margin 8.3 % -16.4 % 10.2 % 18.0 %Asset turnover rate 24.6 % 20.4 % 20.8 % 29.4 %

Farm interest expense 27,843 44,614 17,208 38,969Value of operator lbr and mgmt. 43,447 42,814 30,890 72,238Return on farm assets 36,802 -67,446 24,222 170,340Average farm assets 1,794,840 2,014,874 1,141,654 3,219,460Return on farm equity 8,959 -112,060 7,014 131,371Average farm equity 959,578 848,014 604,311 1,938,918Value of farm production 441,427 410,669 237,772 946,925




Liquidity

Current ratio 1.62 1.12 1.53 2.5Working capital 138,627 45,613 65,811 438,961Working capital to gross inc. 24.70% 7.90% 22.30% 37.40%

Current assets 362,417 429,792 189,732 731,888Current liabilities 223,790 384,179 123,920 292,926Gross revenues (accrual) 561,184 577,944 294,869 1,173,080

Repayment capacity

Net farm income from operations 36,419 -104,383 24,288 198,646Depreciation 40,070 49,058 22,131 74,889Personal income 28,964 37,732 25,912 20,450Family living/owner withdrawals -48,058 -43,266 -32,997 -73,141

-10 -4 -88 120Payments on personal debt -2,889 -3,222 -2,625 -2,496Income taxes paid -6,713 -3,900 -3,946 -17,480Interest on term debt 22,480 30,871 14,693 34,810Capital debt repayment capacity 70,274 -37,110 47,456 235,678

Scheduled term debt payments -79,553 -97,312 -45,426 -134,450Capital debt repayment margin -9,279 -134,422 2,030 101,229

Cash replacement allowance -13,418 -12,698 -8,953 -26,771Replacement margin -22,698 -147,120 -6,923 74,457

Term debt coverage ratio 0.88 -0.38 1.04 1.75Replacement coverage ratio 0.76 -0.34 0.87 1.46


Liquidity & Repayment Capacity MeasuresNorthern Minnesota Farm Business Management Data


2011 2012 2013 2014 2015

Median 40-60% 67,271 107,866 27,464 49,665 24,288

Low 20% -20,970 -15,500 -76,237 -70,306 -104,383

High20% 372,448 620,037 336,039 463,698 198,646

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000Net Farm Income from Operations

0

50,000

100,000

150,000

200,000

2011 2012 2013 2014 2015

116,594

174,381

73,490

111,833

30,645

Change in Net Worth

Working Capital

Operating Expense Ratio

Asset Turnover Rate



Selected Financial Guideline Measures

Low20%

20-40% 40-60% 60-80% High20%

45,613 43,689

65,81197,653

438,961

By Net Farm Income

Crop Dairy Beef Crop&Dairy

Beef &Crop

Other

79.2% 79.2%

99.4%

81.5%86.4%

81.2%

By Type of Farm

Low 20% 20-40% 40-60% 60-80% High 20%

24.9% 24.7%26.1%

33.1%33.9%

By Net Farm Income

Low 20% 20-40% 40-60% 60-80% High 20%

101.9%

87.9%

78.4%75.0% 73.4%

By Net Farm Income


Beef &Crop

Other

33.0%32.2%

13.7%

32.1%

26.9%25.4%

By Type of Farm


Beef &Crop

Other

197,975

128,355

1,357

116,279 129,612 121,954

By Type of Farm

Operator and Labor InformationNorthern Minnesota Farm Business Management Data




Operator InformationAverage number of operators 1.2 1.2 1.1 1.5Average age of operators 46.2 47.0 46.1 46.0Average number of years farming 21.4 22.6 20.7 22.9

Results Per OperatorWorking capital 115,727 38,869 60,297 295,310Total assets (market) 1,672,151 1,883,213 1,211,373 2,357,688Total liabilities 747,170 1,067,467 533,379 897,507Net worth (market) 924,981 815,746 677,994 1,460,182Net worth excl deferred liabs 1,065,264 971,457 769,054 1,679,425

Gross farm income 468,483 492,494 270,161 789,187Total farm expense 438,080 581,444 247,909 655,548Net farm income from operations 30,403 -88,950 22,253 133,639

Net nonfarm income 24,180 32,154 23,741 13,758Family living & tax withdrawals 45,732 40,196 33,929 60,885

Total acres owned 249.5 287.3 197.1 295.5Total crop acres 574.4 699.2 370.8 790.6Crop acres owned 207.1 243.6 159.9 268.8Crop acres cash rented 357.3 443.7 205.5 507.5Crop acres share rented 9.9 12.0 5.4 14.3Total pasture acres 31.6 36.0 38.9 17.7

Labor AnalysisNumber of farms 588 117 117 118Total unpaid labor hours 2,682 2,585 2,082 3,966Total hired labor hours 2,075 1,914 708 5,237Total labor hours per farm 4,757 4,500 2,789 9,203Unpaid hours per operator 2,239 2,203 1,908 2,668Value of farm production / hour 92.79 91.27 85.24 102.89Net farm income / unpaid hour 13.58 -40.37 11.67 50.09Average hourly hired labor wage 17.06 15.07 16.47 17.45

Partnerships & LLCsNumber of farms 75 13 11 27Number of operators 2.1 2.2 1.8 2.3Owner withdrawals per farm 63,587 - - 79,680Withdrawals per operator 31,018 - - 39,840

CorporationsNumber of farms 15 3 1 6Number of operators 2.1 - - 2.5


Household and Personal ExpensesNorthern Minnesota Farm Business Management Data




Average family size 3.5 3.3 3.2 4.3

Family Living ExpensesFood and meals expense 8,439 9,017 6,579 9,740Medical care 3,078 2,879 1,123 6,780Health insurance 3,869 3,744 1,811 5,178Cash donations 1,340 412 1,466 1,988Household supplies 3,125 1,467 3,151 2,621Clothing 1,558 1,152 1,056 3,819Personal care 2,843 4,545 1,933 3,335Child / Dependent care 771 713 715 1,149Alimony and child support 5 - 32 -Gifts 1,603 1,103 1,639 3,665Education 1,632 1,233 1,833 1,149Recreation 2,815 2,421 1,497 6,238Utilities (household share) 2,721 2,835 3,074 3,022Personal vehicle operating exp 4,156 3,196 4,138 4,126Household real estate taxes 260 188 274 153Dwelling rent 564 525 - 1,988Household repairs 1,544 1,694 1,472 4,255Personal interest 1,488 1,357 916 1,497Disability / Long term care ins 270 411 96 502Life insurance payments 1,476 1,822 1,753 1,777Personal property insurance 196 237 56 74Miscellaneous 4,685 4,841 4,565 5,684

Total cash family living expense 48,439 45,791 39,178 68,740Family living from the farm 344 624 - 597Total family living 48,783 46,415 39,178 69,336

Other Nonfarm ExpendituresIncome taxes 7,714 6,221 4,487 35,410Furnishing & appliance purchases 181 - 102 -Nonfarm vehicle purchases 3,004 1,536 2,046 10,325Nonfarm real estate purchases 10,241 696 -2,222 51,722Other nonfarm capital purchases 1,185 - 1,185 8,182Nonfarm savings & investments 3,923 6,728 6,402 7,077

Total other nonfarm expenditures 26,248 15,182 11,999 112,715

Total cash family livinginvestment & nonfarm capital purch 74,687 60,973 51,177 181,455


Nonfarm SummaryNorthern Minnesota Farm Business Management Data




Nonfarm IncomePersonal wages & salary 19,200 21,979 18,403 8,823Net nonfarm business income 3,011 2,105 4,165 3,638Personal rental income 552 1,687 259 335Personal interest income 107 32 51 222Personal cash dividends 143 323 76 141Tax refunds 1,447 2,030 1,057 1,708Other nonfarm income 4,505 9,576 1,902 5,584

Total nonfarm income 28,964 37,732 25,912 20,450

Gifts and inheritances 2,425 1,681 5,294 2,747

Nonfarm Assets (market)Checking & savings 7,173 9,277 3,746 9,259Stocks & bonds 7,651 5,272 11,129 12,337Other current assets 1,869 1,837 1,120 4,692Furniture & appliances 8,723 13,449 7,447 6,467Nonfarm vehicles 13,762 15,511 12,687 15,455Cash value of life ins. 5,049 5,416 4,138 6,087Retirement accounts 37,832 36,778 34,393 41,918Other intermediate assets 7,170 17,019 5,872 2,771Nonfarm real estate 70,282 78,351 55,295 84,186Personal bus. investment 4,472 2,675 1,166 17,687Other long term assets 7,330 3,358 6,600 8,892

Total nonfarm assets 171,312 188,943 143,592 209,751

Nonfarm LiabilitiesAccrued interest 74 50 16 165Accounts payable 884 1,365 343 1,820Current notes 1,628 2,943 839 718Princ due on term debt 2,836 3,151 2,634 2,721

Total current liabilities 7,412 8,127 4,382 12,096Intermediate liabilities 4,001 5,999 3,274 2,915Long term liabilities 20,642 23,101 11,781 21,940Total nonfarm liabilities 32,055 37,227 19,437 36,952

Nonfarm net worth 139,257 151,716 124,155 172,799Nonfarm debt to asset ratio 19 % 20 % 14 % 18 %



(Farms Sorted By Total Acres)

Less than 101 - 251 - 501 - 1,001 - 1,501 - 2,001 -100 250 500 1,000 1,500 2,000 5,000

Number of farms 98 127 122 118 49 25 48

Income StatementGross cash farm income 258,126 208,305 377,439 577,570 1,122,654 876,417 1,644,963Total cash farm expense 217,463 173,313 322,876 494,603 999,421 778,426 1,353,209Net cash farm income 40,663 34,991 54,563 82,967 123,234 97,991 291,754Inventory change -1,518 590 2,746 -5,913 38,465 -19,713 -78,557Depreciation -18,342 -15,740 -28,700 -39,603 -78,584 -63,925 -125,620Net farm income from operations 20,802 19,842 28,609 37,450 83,114 14,352 87,577Gain or loss on capital sales -393 -6 1,750 2,445 -1,067 28 785Average net farm income 20,409 19,836 30,358 39,895 82,047 14,380 88,362Median net farm income 8,821 8,454 20,116 37,824 70,463 36,660 77,035

Profitability (cost)Rate of return on assets 1.3 % 1.1 % 1.0 % 1.4 % 2.6 % 0.1 % 1.4 %Rate of return on equity -2.1 % -2.3 % -1.6 % -1.0 % 1.0 % -3.9 % -0.1 %Operating profit margin 5.0 % 4.1 % 3.7 % 5.1 % 7.9 % 0.4 % 4.1 %Asset turnover rate 25.7 % 26.3 % 27.3 % 28.0 % 32.5 % 31.9 % 33.7 %

Profitability (market)Rate of return on assets 2.8 % 2.4 % 1.3 % 1.9 % 2.6 % 0.9 % 2.3 %Rate of return on equity 2.0 % 1.4 % -0.4 % 0.5 % 1.6 % -1.6 % 1.8 %Operating profit margin 13.2 % 11.8 % 6.0 % 8.3 % 9.4 % 3.6 % 7.9 %Asset turnover rate 21.0 % 19.9 % 22.2 % 22.7 % 27.2 % 26.2 % 29.1 %

Liquidity & Repayment (end of year)Current assets 123,200 95,694 230,054 391,781 636,464 713,268 1,281,341Current liabilities 104,082 60,917 123,099 237,307 421,680 543,723 752,988Current ratio 1.18 1.57 1.87 1.65 1.51 1.31 1.70Working capital 19,117 34,776 106,954 154,474 214,784 169,544 528,353Working capital to gross inc 7.3 % 16.3 % 27.4 % 26.5 % 18.1 % 19.2 % 32.4 %Term debt coverage ratio 0.94 0.98 1.07 0.82 0.93 0.38 0.87Replacement coverage ratio 0.86 0.89 0.90 0.71 0.84 0.32 0.69Term debt to EBITDA 4.88 5.64 4.60 4.91 4.12 5.07 2.86

Solvency (end of year at cost)Number of farms 98 127 122 118 49 25 48Total assets 810,077 774,286 1,240,665 1,848,690 3,021,615 2,649,526 4,372,117Total liabilities 428,707 382,178 527,677 840,833 1,362,696 1,267,076 1,554,884Net worth 381,370 392,108 712,987 1,007,857 1,658,920 1,382,450 2,817,233Net worth change 9,561 16,660 22,470 9,960 57,163 -43,691 1,062Farm debt to asset ratio 57 % 55 % 46 % 49 % 47 % 50 % 36 %Total debt to asset ratio 53 % 49 % 43 % 45 % 45 % 48 % 36 %Change in earned net worth % 3 % 4 % 3 % 1 % 4 % -3 % 0 %

Solvency (end of year at market)Number of farms 98 127 122 118 49 25 48Total assets 982,607 986,054 1,492,354 2,251,012 3,589,360 3,193,065 5,098,527Total liabilities 482,414 444,061 651,070 1,007,278 1,689,387 1,578,323 2,102,963Net worth 500,193 541,994 841,284 1,243,734 1,899,973 1,614,742 2,995,564Total net worth change 23,404 29,470 29,744 24,207 71,139 -21,389 54,176Farm debt to asset ratio 52 % 49 % 47 % 47 % 49 % 52 % 42 %Total debt to asset ratio 49 % 45 % 44 % 45 % 47 % 49 % 41 %Change in total net worth % 5 % 6 % 4 % 2 % 4 % -1 % 2 %

Nonfarm InformationNet nonfarm income 27,070 34,019 27,768 25,854 35,594 15,058 31,001Farms reporting living expenses 18 23 13 15 1 3 3Total family living expense 42,112 49,741 40,348 53,446 - - -Total living, invest, cap. purch 47,013 57,054 80,172 93,515 - - -

Crop AcresTotal crop acres 22 172 370 704 1,231 1,733 2,972Total crop acres owned 14 96 158 287 426 535 932Total crop acres cash rented 7 72 208 409 802 1,171 1,948Total crop acres share rented 1 3 3 7 4 27 92Machinery value per crop acre 1,377 962 746 659 650 481 506




Acreage Summary

Total acres owned 299 337 215 439Total crop acres 688 821 405 1,175Crop acres owned 248 286 175 400Crop acres cash rented 428 521 224 754Crop acres share rented 12 14 6 21Total pasture acres 38 42 42 26Percent crop acres owned 36% 35% 43% 34%

Mach invest/crop acre cost 542 521 499 604Mach invest/crop acre market 611 585 573 664

Soybeans per bushel 9.13 8.93 8.88 9.41Corn per bushel 3.44 3.52 2.99 3.56Wheat, Spring per bushel 5.26 5.07 4.87 5.45Hay, Alfalfa per ton 108.39 118.97 130.27 100.43Oats per bushel 2.65 2.47 3.75 2.39Barley per bushel 4.69 5.50 - 4.13Hay, Mixed per ton 78.66 73.59 - -Hay, Grass per ton 87.41 85.15 - -Corn Silage per ton 38.79 - - 44.62Rye per bushel 5.93 6.12 - 5.86Sunflowers per cwt 20.56 - - -Grass Seed, Perennial Rye per lb 0.662 0.683 - 0.654Wheat, Winter per bushel 4.60 - - -Beans, Navy per cwt 27.71 - - -

Average Yield Per Acre

Soybeans (bushel) 39.40 39.47 37.83 39.41Corn (bushel) 164.15 169.70 156.57 165.85Corn Silage (ton) 18.76 18.75 17.74 19.52Hay, Alfalfa (ton) 3.85 3.71 3.68 4.34Wheat, Spring (bushel) 66.01 62.83 63.60 67.99Hay, Grass (ton) 2.00 2.19 1.67 2.24Hay, Mixed (ton) 2.30 2.20 2.53 2.46Oats (bushel) 82.92 73.53 81.65 95.30Barley (bushel) 76.60 77.64 66.30 75.65Rye (bushel) 43.60 44.49 35.46 40.75Wheat, Winter (bushel) 41.86 36.68 - 45.28Sunflowers (cwt) 17.35 - - -Beans, Navy (cwt) 18.66 - - -


Crop Production and Marketing SummaryNorthern Minnesota Farm Business Management Data


Average Price Received (Cash Sales Only)

0

500

1000

1500

Average Low 20% Median High 20%

248 286 175400428 521

224

754

Crop Acres ‐ Owned & Cash Rented

Crop acres owned

Crop acres cashrented

Individual Enterprise Analysis Tables

The individual crop and livestock tables are designed to identify the costs and returns for specific enterprises on the farm. Data from all farmers with each enterprise is merged. The minimum number of farms, in order to print a given column on the following reports, is five (5). This enables the necessary level of confidentiality for publication of this information. Crop report costs such as fertilizer, chemicals, seed, crop drying expenses, hired labor, and custom hire are costs that are assigned to each individual crop. These costs are shown in the crop enterprise analysis as Direct Costs. Other costs, called Overhead Costs, are divided out by formula. Overhead costs are assigned by an allocation factor to each enterprise. The allocation factor is based on historical data of labor and capital intensity. There are a couple of subtle differences between the Owned Land and Cash Rented Land tables. Naturally, on cash rented land, the actual cost of renting the land is reported in the direct cost section. On the owned land, there are two different lines of information in the overhead cost section that would be included for calculating cost of ownership: real-estate taxes and interest on long-term debt. The livestock reports have a format similar to the crop reports. Production information is listed at the top of each table. This will include animal or product sales, purchases, sales, transfers, and inventory change. The Direct Costs include costs that are assigned to the enterprise, including items such as: feed, veterinary, breeding, marketing, hired labor, fuel & repairs, and livestock supplies. The Overhead Costs include formula-assigned costs, including items such as: depreciation, interest, utilities, and insurances. At the bottom of each livestock report, there is a list of selected factors for each enterprise. These factors are a combination of production indicators and efficiency indicators. Towards the bottom of both the crop and livestock enterprise tables, are four (4) factors that show varying levels of Cost of Production. Those factors include a cost of production based on: direct costs, overhead & direct costs, total cost less government payments and/or other revenue, and total cost including labor & management. Machinery Cost per Acre is a factor used to combine all costs related to machinery usage. The Machinery Cost per Acre includes: Fuel & Oil, Repairs, Custom hire, Machinery leases, Interest on machinery debt, and Machinery depreciation. A machinery cost summary for five prominent Northern Minnesota crops is listed below. Data is taken from the owned land enterprise tables.

Crop 2011 2012 2013 2014 2015 Alfalfa Hay $134.95 $150.94 $145.46 $190.49 $164.47 Corn $142.37 154.11 152.35 $162.84 $159.23 Corn Silage $184.16 $185.94 $178.58 $229.01 $209.02 Soybeans $87.20 $88.40 $85.28 $87.39 $81.89 Spring Wheat $84.21 $94.18 $87.97 $86.33 $84.02



Five Year History of Crop Yields and Cost of Production


2.0

3.0

4.0

2011 2012 2013 2014 2015

3.8

3.3

3.53.7

3.8

Alfalfa Hay Yields (cash rented land)

60.0

100.0

140.0

180.0

2011 2012 2013 2014 2015

119.4128.5

105.4118.2

164.2

Corn Yields (cash rented land)

30.0

50.0

70.0

2011 2012 2013 2014 2015

48.3

59.3

65.762.4

66.3

Spring Wheat Yields(cash rented land)

15

25

35

45

2011 2012 2013 2014 2015

30.8

37.0

30.632.8

40.1

Soybeans Yields(cash rented land)

$160

$260

$360

2011 2012 2013 2014 2015

$278

$310 $311$330 $321

Soybeans - Direct & Overhead Expense(cash rented land)

$200

$300

$400

2011 2012 2013 2014 2015

$319$343

$355 $351$330

Spring Wheat- Direct & Overhead Expense(cash rented land)

$350

$450

$550

$650

2011 2012 2013 2014 2015

$493

$545$565

$611$586

Corn - Direct & Overhead Expense (cash rented land)

$100

$200

$300

$400

2011 2012 2013 2014 2015

$275

$314$335

$381$354

Alfalfa Hay - Direct & Overhead Expense (cash rented land)

Crop Enterprise AnalysisNorthern Minnesota Farm Business Management Data

(Farms Sorted By Return to Overhead)

Corn on Owned Land

Avg. OfAll Farms 40 - 60% High 20%

Number of farms 199 40 40

Acres 95.38 115.86 83.62Yield per acre (bu.) 164.15 164.73 182.27Operators share of yield % 100.00 100.00 100.00Value per bu. 3.30 3.31 3.31Other product return per acre 6.54 4.86 11.32Total product return per acre 547.68 549.91 615.15Hedging gains/losses per acre -0.42 - -Crop insurance per acre 12.18 15.98 29.05Other crop income per acre 3.25 1.45 3.82Gross return per acre 562.70 567.33 648.02

Direct ExpensesSeed 96.75 99.95 94.17Fertilizer 123.68 136.71 90.80Crop chemicals 27.44 27.08 25.05Crop insurance 21.36 18.81 22.68Drying expense 9.92 8.79 9.79Storage 0.92 2.34 0.36Packaging and supplies 1.11 0.30 1.99Fuel & oil 30.19 28.26 27.87Repairs 50.61 53.19 45.81Custom hire 14.32 9.35 12.30Hired labor 1.58 0.06 6.26Machinery leases 2.44 1.68 1.78Hauling and trucking 2.05 1.39 0.38Marketing 0.76 0.91 0.67Operating interest 8.50 8.95 3.93Miscellaneous 2.47 1.38 2.88

Total direct expenses per acre 394.10 399.15 346.72Return over direct exp per acre 168.60 168.19 301.30

Overhead ExpensesHired labor 13.13 18.86 6.88Machinery leases 4.37 11.12 0.45Building leases 0.72 0.12 0.52RE & pers. property taxes 18.65 19.82 16.88Farm insurance 9.44 10.39 9.74Utilities 6.50 6.62 9.45Dues & professional fees 3.42 3.15 4.24Interest 51.17 67.48 45.16Mach & bldg depreciation 56.10 58.61 61.99Miscellaneous 5.14 4.56 4.01

Total overhead expenses per acre 168.65 200.74 159.32Total dir & ovhd expenses per acre 562.75 599.89 506.04Net return per acre -0.05 -32.56 141.98

Government payments 33.00 32.46 32.93Net return with govt pmts 32.95 -0.09 174.91Labor & management charge 53.72 52.34 59.97Net return over lbr & mgt -20.77 -52.44 114.94

Cost of ProductionTotal direct expense per bu. 2.40 2.42 1.90Total dir & ovhd exp per bu. 3.43 3.64 2.78Less govt & other income 3.10 3.31 2.35With labor & management 3.42 3.63 2.68

Net value per unit 3.29 3.31 3.31Machinery cost per acre 159.23 168.61 152.18Est. labor hours per acre 4.22 3.96 4.45




Corn on Cash Rent



Acres 159.28 201.41 114.44Yield per acre (bu.) 164.17 158.52 179.77Operators share of yield % 100.00 100.00 100.00Value per bu. 3.32 3.37 3.33Other product return per acre 4.40 4.50 11.87Total product return per acre 548.80 539.20 610.38Hedging gains/losses per acre 0.51 - 3.64Crop insurance per acre 6.82 8.68 1.56Other crop income per acre 2.10 2.01 2.06Gross return per acre 558.23 549.88 617.65

Direct ExpensesSeed 94.78 95.10 85.91Fertilizer 124.86 135.31 99.36Crop chemicals 27.35 24.64 24.88Crop insurance 20.88 22.13 18.51Drying expense 10.30 11.52 10.48Storage 0.90 0.58 0.41Packaging and supplies 1.29 0.04 1.86Fuel & oil 25.19 23.34 27.76Repairs 45.82 52.37 37.07Custom hire 12.91 9.78 10.79Hired labor 1.49 1.67 0.63Land rent 102.00 87.26 81.42Machinery leases 3.73 1.65 3.16Utilities 0.33 0.88 0.00Hauling and trucking 2.24 1.54 1.57Marketing 0.88 1.35 1.00Operating interest 6.47 7.49 4.70Miscellaneous 2.41 0.74 2.06


Overhead ExpensesHired labor 15.83 15.48 15.03Machinery leases 6.92 9.75 4.45Building leases 0.59 0.52 1.94Farm insurance 7.54 7.14 5.78Utilities 4.91 3.57 4.96Dues & professional fees 3.14 3.31 2.58Interest 7.83 8.59 6.86Mach & bldg depreciation 50.05 47.44 48.92Miscellaneous 4.91 6.43 4.50

Total overhead expenses per acre 101.75 102.22 95.00Total dir & ovhd expenses per acre 585.59 579.61 506.56Net return per acre -27.36 -29.73 111.09

Government payments 33.02 29.81 31.09Net return with govt pmts 5.66 0.09 142.18Labor & management charge 45.09 43.74 50.40Net return over lbr & mgt -39.43 -43.65 91.79






Soybeans on Owned Land



Acres 195.80 209.12 89.43Yield per acre (bu.) 38.05 38.74 54.20Operators share of yield % 100.00 100.00 100.00Value per bu. 8.33 8.46 8.48Other product return per acre 0.01 - 0.13Total product return per acre 316.94 327.71 459.70Hedging gains/losses per acre -0.10 - -Crop insurance per acre 12.13 11.14 9.20Other crop income per acre 2.75 1.75 5.05Gross return per acre 331.72 340.59 473.95

Direct ExpensesSeed 63.36 63.24 56.36Fertilizer 31.69 33.90 16.62Crop chemicals 25.06 23.36 29.50Crop insurance 14.56 15.28 17.47Fuel & oil 16.03 16.10 14.18Repairs 22.21 22.40 24.89Custom hire 7.04 9.14 2.55Hired labor 0.54 0.14 2.99Machinery leases 1.03 0.86 1.57Hauling and trucking 0.54 0.13 2.13Marketing 0.60 0.97 0.85Operating interest 4.15 3.18 3.37Miscellaneous 1.32 1.32 1.81



Total overhead expenses per acre 100.00 91.99 122.79Total dir & ovhd expenses per acre 288.14 282.01 297.08Net return per acre 43.58 58.59 176.86

Government payments 19.78 19.56 35.37Net return with govt pmts 63.36 78.14 212.23Labor & management charge 30.59 33.84 34.01Net return over lbr & mgt 32.77 44.30 178.22






Soybeans on Cash Rent



Acres 315.84 369.28 258.32Yield per acre (bu.) 40.08 37.44 46.82Operators share of yield % 100.00 100.00 100.00Value per bu. 8.37 8.28 8.42Other product return per acre 0.02 - 0.10Total product return per acre 335.50 310.22 394.38Hedging gains/losses per acre -0.02 -0.37 -Crop insurance per acre 9.24 8.93 20.60Other crop income per acre 2.87 3.71 2.01Gross return per acre 347.59 322.49 416.99

Direct ExpensesSeed 62.71 65.66 57.93Fertilizer 29.51 26.14 19.56Crop chemicals 25.33 24.35 26.14Crop insurance 14.66 15.30 15.08Fuel & oil 14.82 15.18 11.50Repairs 22.02 21.71 20.42Custom hire 6.43 4.47 5.36Hired labor 1.21 1.54 1.48Land rent 78.29 74.88 69.83Machinery leases 3.12 1.58 3.18Hauling and trucking 0.57 0.41 0.62Marketing 0.64 0.91 1.00Operating interest 4.66 5.46 4.53Miscellaneous 2.08 1.97 1.57




Government payments 18.42 13.75 25.29Net return with govt pmts 45.09 28.36 154.70Labor & management charge 27.22 29.69 23.50Net return over lbr & mgt 17.88 -1.33 131.20






Wheat, Spring on Owned Land



Acres 247.58 286.59 312.86Yield per acre (bu.) 65.98 66.70 74.53Operators share of yield % 100.00 100.00 100.00Value per bu. 4.96 4.86 5.31Other product return per acre 0.34 - 0.81Total product return per acre 327.94 324.08 396.38Crop insurance per acre 5.88 2.98 5.50Other crop income per acre 5.92 7.61 9.73Gross return per acre 339.73 334.66 411.60

Direct ExpensesSeed 20.52 21.06 18.95Fertilizer 91.35 88.20 84.38Crop chemicals 28.72 28.71 24.03Crop insurance 11.90 12.37 10.93Drying expense 0.83 1.14 0.31Fuel & oil 17.41 16.80 18.50Repairs 20.74 21.00 19.64Custom hire 9.82 10.86 8.49Hired labor 0.45 - 1.62Machinery leases 0.85 0.00 1.19Hauling and trucking 1.10 0.08 2.72Marketing 0.67 0.84 0.04Operating interest 4.42 4.17 3.58Miscellaneous 1.75 1.41 3.03


Overhead ExpensesCustom hire 0.16 0.57 -Hired labor 10.58 8.24 12.46Machinery leases 2.00 2.83 0.23Building leases 0.45 0.79 0.01RE & pers. property taxes 10.83 9.20 12.54Farm insurance 5.48 5.05 3.90Utilities 3.70 3.35 2.94Dues & professional fees 1.95 1.17 1.59Interest 18.66 18.61 22.42Mach & bldg depreciation 32.45 28.83 35.16Miscellaneous 2.57 2.39 3.13








Wheat, Spring on Cash Rent



Acres 357.97 378.70 355.24Yield per acre (bu.) 66.25 63.30 71.60Operators share of yield % 100.00 100.00 100.00Value per bu. 5.02 4.84 5.44Other product return per acre 1.10 - 4.99Total product return per acre 333.86 306.41 394.57Crop insurance per acre 6.53 9.83 11.04Other crop income per acre 6.54 3.96 11.27Gross return per acre 346.93 320.20 416.87

Direct ExpensesSeed 20.63 20.56 19.82Fertilizer 95.33 96.34 87.97Crop chemicals 28.79 31.68 29.91Crop insurance 10.66 10.89 10.96Drying expense 0.55 0.76 0.13Fuel & oil 15.55 15.96 16.11Repairs 20.85 18.29 20.72Custom hire 6.25 7.38 3.71Hired labor 0.58 0.06 0.67Land rent 68.23 55.34 68.74Machinery leases 2.44 1.12 3.39Hauling and trucking 0.53 0.04 1.30Marketing 1.44 0.17 0.01Operating interest 4.17 4.22 3.60Miscellaneous 1.54 1.20 1.52



Total overhead expenses per acre 52.93 57.17 46.15Total dir & ovhd expenses per acre 330.46 321.16 314.69Net return per acre 16.47 -0.96 102.18







Corn Silage on Owned Land



Acres 59.02 74.66 50.48Yield per acre (ton) 19.51 19.76 23.94Operators share of yield % 100.00 100.00 100.00Value per ton 34.46 34.81 35.27Total product return per acre 672.15 687.64 844.31Crop insurance per acre 1.95 - -Other crop income per acre 0.79 - 1.42Gross return per acre 674.88 687.64 845.73

Direct ExpensesSeed 91.00 95.88 85.52Fertilizer 80.83 84.24 66.48Crop chemicals 27.51 34.58 21.41Crop insurance 15.68 15.34 18.58Packaging and supplies 10.17 7.28 15.42Fuel & oil 33.76 40.61 34.83Repairs 60.15 69.24 50.76Custom hire 49.99 41.15 26.58Hired labor 1.43 - 0.54Machinery leases 3.01 3.91 2.15Operating interest 3.97 3.66 1.25Miscellaneous 2.18 1.15 0.95





Cost of ProductionTotal direct expense per ton 19.47 20.10 13.56Total dir & ovhd exp per ton 28.43 29.46 21.84Less govt & other income 26.75 27.61 20.73With labor & management 29.31 30.09 23.32





Corn Silage on Cash Rent



Acres 87.77 83.59 63.58Yield per acre (ton) 18.15 19.61 23.03Operators share of yield % 100.00 100.00 100.00Value per ton 34.84 34.32 35.20Other product return per acre 0.14 0.72 -Total product return per acre 632.56 673.57 810.80Hedging gains/losses per acre 0.00 - -Crop insurance per acre 1.00 - 0.37Other crop income per acre 1.86 1.29 0.27Gross return per acre 635.43 674.86 811.44

Direct ExpensesSeed 93.54 95.30 90.96Fertilizer 78.19 87.64 61.97Crop chemicals 28.16 32.36 24.24Crop insurance 15.85 17.56 11.02Storage 1.29 - 3.51Packaging and supplies 10.83 7.45 2.16Fuel & oil 34.98 30.11 34.80Repairs 57.36 52.38 53.04Custom hire 48.82 55.69 23.56Land rent 87.64 65.82 56.97Machinery leases 5.62 11.68 2.45Hauling and trucking 0.51 0.33 0.05Operating interest 5.12 2.18 3.33Miscellaneous 4.28 7.19 2.63










Hay, Alfalfa on Owned Land



Acres 53.47 48.87 50.18Yield per acre (ton) 3.92 3.92 5.65Operators share of yield % 100.00 100.00 100.00Value per ton 153.84 168.48 174.95Other product return per acre 0.09 0.48 -Total product return per acre 602.43 660.27 989.20Crop insurance per acre 17.10 0.49 66.22Other crop income per acre 1.95 2.60 3.31Gross return per acre 621.48 663.36 1,058.73

Direct ExpensesSeed 0.41 1.65 -Fertilizer 34.89 50.67 25.30Crop chemicals 5.89 2.38 6.85Non-chemical crop protect 0.43 2.01 -Crop insurance 3.70 4.24 6.12Storage 0.66 1.64 0.41Packaging and supplies 5.29 3.10 5.88Fuel & oil 31.30 32.93 33.59Repairs 51.80 70.38 65.72Custom hire 21.45 48.73 29.68Hired labor 0.11 0.58 -Machinery leases 1.49 3.70 1.22Operating interest 5.11 2.62 2.79Miscellaneous 2.28 5.52 1.27


Overhead ExpensesHired labor 18.70 14.99 21.50Machinery leases 4.84 0.53 5.06RE & pers. property taxes 13.76 14.47 14.61Farm insurance 10.67 12.37 9.81Utilities 6.78 7.26 7.64Dues & professional fees 3.03 2.77 4.09Interest 48.44 45.07 59.53Mach & bldg depreciation 50.95 50.24 69.54Miscellaneous 7.29 9.22 8.03








Hay, Alfalfa on Cash Rent



Acres 57.73 54.34 61.88Yield per acre (ton) 3.80 3.47 5.15Operators share of yield % 100.00 100.00 100.00Value per ton 153.93 162.41 163.46Other product return per acre 0.30 1.59 -Total product return per acre 585.12 565.91 841.10Crop insurance per acre 12.81 4.69 44.17Other crop income per acre 2.18 0.06 4.93Gross return per acre 600.12 570.66 890.19

Direct ExpensesSeed 0.74 0.37 1.51Fertilizer 39.57 44.31 38.40Crop chemicals 7.17 1.14 2.96Crop insurance 2.92 1.01 4.33Storage 0.82 0.68 2.23Packaging and supplies 7.14 1.14 7.91Fuel & oil 30.46 24.94 27.57Repairs 48.00 39.68 50.22Custom hire 17.99 25.88 11.92Land rent 86.20 112.92 77.79Machinery leases 2.69 0.50 3.36Operating interest 4.61 2.79 3.19Miscellaneous 2.96 6.44 1.09










Hay, Mixed on Owned Land



Acres 56.43 70.51 28.05Yield per acre (ton) 2.11 2.59 3.31Operators share of yield % 100.00 100.00 100.00Value per ton 88.96 79.11 138.91Total product return per acre 188.08 205.24 459.22Other crop income per acre 2.03 - 2.55Gross return per acre 190.11 205.24 461.77

Direct ExpensesSeed 0.88 0.25 0.71Fertilizer 24.03 25.30 31.59Crop insurance 0.57 0.06 2.55Packaging and supplies 3.84 7.58 0.24Fuel & oil 19.47 16.44 21.56Repairs 36.32 39.95 21.53Custom hire 6.41 0.53 48.61Hired labor 4.20 - -Machinery leases 0.69 - -Marketing 0.07 - 0.62Operating interest 2.85 6.24 2.49Miscellaneous 2.02 0.28 0.19


Overhead ExpensesHired labor 4.16 8.66 5.02Machinery leases 0.23 0.52 0.73RE & pers. property taxes 8.61 7.93 12.23Farm insurance 5.86 4.51 5.20Utilities 3.64 5.67 4.00Dues & professional fees 4.06 2.79 2.84Interest 21.63 15.90 23.98Mach & bldg depreciation 23.61 16.14 27.35Miscellaneous 3.36 1.83 11.43


Government payments 14.09 23.12 24.56Net return with govt pmts 27.67 67.77 263.44Labor & management charge 34.17 30.90 40.65Net return over lbr & mgt -6.50 36.86 222.78






Hay, Mixed on Cash Rent



Acres 79.02 132.78 38.80Yield per acre (ton) 2.41 1.99 4.19Operators share of yield % 100.00 100.00 100.00Value per ton 88.45 68.61 126.63Total product return per acre 213.28 136.39 530.48Other crop income per acre 0.55 - 1.84Gross return per acre 213.82 136.39 532.33

Direct ExpensesSeed 0.82 - 3.35Fertilizer 18.39 7.76 43.58Crop insurance 0.67 - 0.37Storage 1.51 0.03 1.91Packaging and supplies 2.70 1.54 4.57Fuel & oil 18.06 14.02 19.02Repairs 29.32 19.48 37.52Custom hire 6.19 0.25 4.77Hired labor 3.45 - -Land rent 38.59 21.97 54.06Machinery leases 0.79 1.09 -Operating interest 3.86 5.96 1.73Miscellaneous 1.54 0.40 0.02










Hay, Grass on Cash Rent



Acres 82.76 61.58 38.18Yield per acre (ton) 1.91 1.82 3.27Operators share of yield % 100.00 100.00 100.00Value per ton 70.42 70.21 83.94Other product return per acre 1.10 - -Total product return per acre 135.66 127.43 274.74Other crop income per acre 0.99 - 0.36Gross return per acre 136.65 127.43 275.10

Direct ExpensesSeed 0.06 - 0.66Fertilizer 16.08 5.68 9.58Packaging and supplies 2.19 2.12 2.85Fuel & oil 12.42 20.65 14.37Repairs 22.34 28.21 21.07Custom hire 1.63 1.69 1.44Land rent 28.35 30.52 42.82Machinery leases 1.24 2.38 -Operating interest 4.93 2.13 2.19Miscellaneous 1.06 0.14 0.44


Overhead ExpensesHired labor 7.34 10.89 19.58Machinery leases 2.04 7.93 0.27Farm insurance 2.68 3.13 2.30Utilities 1.76 2.85 3.02Dues & professional fees 0.74 1.57 1.19Interest 4.23 3.98 5.49Mach & bldg depreciation 19.72 20.70 23.42Miscellaneous 2.41 2.80 1.75

Total overhead expenses per acre 40.90 53.84 57.01Total dir & ovhd expenses per acre 131.20 147.38 152.42Net return per acre 5.45 -19.95 122.67

Government payments 5.47 5.86 6.56Net return with govt pmts 10.92 -14.08 129.23Labor & management charge 16.82 20.24 16.39Net return over lbr & mgt -5.90 -34.32 112.84




Establish Intensive PreventedAlfalfa Hay Pasture Pasture Planting


Acres 65.87 221.73 74.15 73.50Yield per acre 2.80 2.44 4.33 197.45Operators share of yield % 100.00 100.00 100.00 100.00Value 138.24 10.64 18.39 1.00Total product return per acre 387.07 25.97 79.53 197.45Other crop income per acre 25.76 0.72 - 6.53Gross return per acre 412.83 26.69 79.53 203.99

Direct Expenses

Seed 92.25 - - -Fertilizer 65.41 1.93 4.50 98.00Crop chemicals 5.47 - - 6.92Crop insurance 3.99 - - 7.96Packaging and supplies 5.67 - - -Fuel & oil 28.15 2.86 7.68 12.69Repairs 43.20 4.43 14.75 18.41Custom hire 19.58 - - -Machinery Leases 5.69 - - 5.18Land Rent 48.81 10.55 12.41 55.04Operating interest 5.42 0.78 0.28 4.66Miscellaneous 3.66 - 1.26 3.09

Total direct expenses per acre 327.29 20.93 40.88 114.95Return over direct exp per acre 85.54 5.76 38.65 89.04

Overhead Expenses

Hired labor 20.67 1.72 5.43 3.42Mach and bldg leases 5.76 0.30 1.03 -RE & pers. property taxes 4.87 2.33 4.21 2.29Farm insurance 7.52 0.57 1.98 5.97Utilities 4.54 0.87 1.59 1.99Dues & professional fees 2.97 0.51 0.62 0.78Interest 20.53 6.48 7.80 9.48Mach & bldg depreciation 45.39 3.57 16.15 24.97Miscellaneous 4.02 0.51 2.13 4.34

Total overhead expenses per acre 116.26 16.86 40.93 53.23Total dir & ovhd expenses per acre 443.56 37.79 81.81 168.18Net return per acre -30.73 -11.10 -2.27 35.81

Government payments 24.93 1.06 30.66 10.78Net return with govt pmts -5.80 -10.04 28.38 46.59Labor & management charge 46.99 4.26 33.34 21.39Net return over lbr & mgt -52.79 -14.30 -4.95 25.20

Cost of Production

Total direct expense per bu. 116.97 8.57 9.45 0.58

Total dir & ovhd exp per bu. 158.52 15.48 18.91 0.85Less govt & other income 140.31 14.75 11.82 0.76With labor & management 157.11 16.50 19.53 0.87

Net value per unit 138.24 10.64 18.39 1.00Machinery cost per acre 151.80 11.69 39.23 62.57Est. labor hours per acre 4.10 0.35 1.96 1.66

* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes.




Owned and Rented Acres Combined *

Corn Corn Silage Hay, Alfalfa Soybeans


Acres 193.00 100.63 75.38 125.71Yield per acre 186.85 25.42 4.97 52.97Operators share of yield % 100.00 100.00 100.00 100.00Value 3.37 34.85 146.90 8.34Total product return per acre 618.86 885.89 729.93 441.98Crop insurance per acre 4.76 - - 12.07Other crop income per acre 3.10 1.84 0.06 1.37Gross return per acre 626.72 887.72 729.99 455.43

Direct Expenses Seed 98.35 100.70 2.59 54.22Fertilizer 146.45 114.17 80.29 28.32Crop chemicals 27.13 33.43 3.12 27.56Crop insurance 18.04 12.23 0.66 13.20Marketing 1.19 - - 1.36Storage 0.99 - 2.84 0.08Irrigation energy 25.50 18.57 16.89 22.89Packaging and supplies 0.43 12.89 17.13 0.34Fuel & oil 29.23 47.94 34.51 13.74Repairs 44.98 80.56 56.54 29.40Custom hire and Trucking 17.40 53.20 48.70 10.47Hired labor 2.01 - 1.01 3.92Land Rent 69.98 19.12 73.76 63.78Operating interest 8.65 6.93 5.02 7.82Miscellaneous 3.16 7.72 8.36 3.75


Overhead Expenses Hired labor 27.08 40.86 22.60 13.64Mach and bldg leases 10.35 10.62 6.19 2.89RE & pers. property taxes 8.03 10.81 4.48 7.04Farm insurance 10.88 13.31 5.91 7.94Utilities 4.88 8.30 3.29 3.36Dues & professional fees 4.17 4.13 2.16 1.57Interest 29.05 53.50 23.40 20.67Mach & bldg depreciation 67.00 72.18 62.02 32.51Miscellaneous 6.46 4.29 3.80 4.17

Total overhead expenses per acre 167.91 218.01 133.84 93.80Total dir & ovhd expenses per acre 677.44 725.46 485.26 379.91Net return per acre -50.72 162.27 244.73 75.51

Government payments 38.06 39.27 37.05 40.40Net return with govt pmts -12.66 201.54 281.78 115.91Labor & management charge 51.94 47.35 38.43 31.23Net return over lbr & mgt -64.60 154.19 243.35 84.68

Cost of Production Total direct expense per bu. 2.73 19.96 70.72 5.40







Irrigated Crops *

Wheat,Barley Oats Rye Winter

Number of farms 24 70 21 15Acres 229.92 51.17 88.72 132.42

Yield per acre 75.91 82.75 43.60 45.21Operators share of yield % 100.00 100.00 100.00 100.00Value 4.99 2.44 5.44 4.37Other product return per acre 0.54 10.05 40.08 2.89Total product return per acre 379.58 212.31 277.28 200.64

6.70 2.63 - 1.92Other crop income per acre 4.09 32.40 21.87 4.01Gross return per acre 390.37 247.34 299.14 206.58

Direct Expenses Seed 16.33 19.47 17.00 16.94Fertilizer 69.73 35.42 49.48 72.60Crop chemicals 23.50 9.64 5.24 18.13Crop insurance 14.47 6.95 1.35 9.27

Drying expense - - - 0.18Fuel & oil 17.90 12.74 18.02 14.13Repairs 26.35 23.52 22.85 18.48Custom hire 13.84 8.72 7.77 11.45Hired labor 0.44 0.38 - 1.48Land Rent 48.98 29.46 60.98 48.14Hauling and trucking 0.14 1.64 2.82 0.36Operating interest 8.10 3.66 3.53 5.28Miscellaneous 4.58 5.08 11.32 4.98

Total direct expenses per acre 244.35 156.67 200.47 221.42Return over direct exp per acre 146.03 90.66 98.67 -14.84

Overhead Expenses Hired labor 7.77 7.29 10.14 7.93Machinery leases 4.31 1.77 4.20 0.16Building leases 1.13 0.28 0.15 1.75RE & pers. property taxes 1.31 6.26 1.90 1.83Farm insurance 4.76 4.24 5.94 4.67Utilities 5.28 2.95 2.29 4.28Dues & professional fees 1.99 1.70 2.65 1.50Interest 12.55 17.21 3.31 11.29Mach & bldg depreciation 26.92 20.78 32.10 25.86Miscellaneous 1.06 2.92 2.98 0.87

Total overhead expenses per acre 68.12 65.39 65.66 60.59Total dir & ovhd expenses per acre 312.46 222.06 266.13 282.01Net return per acre 77.91 25.27 33.01 -75.43

Government payments 9.91 23.99 27.83 10.50Net return with govt pmts 87.82 49.27 60.84 -64.93Labor & management charge 25.01 22.71 26.19 21.21Net return over lbr & mgt 62.82 26.56 34.66 -86.14






Crop insurance per acre




Soybeans, Soybeans, Beans,Seed Food Navy Sunflowers

Number of farms 8 7 7 11Acres 203.46 429.14 334.34 279.55

Yield per acre 49.58 30.79 18.66 17.35Operators share of yield % 100.00 100.00 100.00 100.00Value 9.25 11.27 26.38 20.14Total product return per acre 458.55 347.09 492.29 349.34

0.50 12.28 - 14.16Other crop income per acre 12.74 8.15 4.60 -Gross return per acre 471.79 367.52 496.89 363.49

.Direct Expenses

Seed 59.02 27.41 57.00 34.58Fertilizer 23.80 14.21 42.31 74.87Crop chemicals 36.60 31.89 82.87 40.26Crop insurance 10.69 12.89 19.58 14.78

Drying expense - - - 0.49Fuel & oil 13.25 19.94 30.34 21.33Repairs 26.73 24.30 40.84 37.38Custom hire 8.64 3.33 1.65 7.14Hired labor - - 0.70 0.12Land Rent 54.21 62.08 44.93 46.29Hauling and trucking - - 3.32 0.21Operating interest 2.19 2.64 6.84 12.43Miscellaneous 9.41 1.24 7.53 1.91


Overhead Expenses Hired labor 2.81 8.63 26.22 14.71Machinery leases 0.36 4.35 0.41 4.46Building leases 0.07 - 2.32 -RE & pers. property taxes 9.14 2.12 9.14 1.32Farm insurance 4.41 4.06 4.35 8.46Utilities 3.63 5.81 4.19 4.81Dues & professional fees 3.06 1.65 2.08 1.87Interest 22.99 13.34 18.90 7.39Mach & bldg depreciation 28.88 19.20 36.27 31.57Miscellaneous 0.86 2.02 4.96 4.42

Total overhead expenses per acre 76.23 61.17 108.84 79.01Total dir & ovhd expenses per acre 320.78 261.10 446.75 370.79Net return per acre 151.01 106.42 50.14 -7.30

Government payments 19.98 10.57 - 13.58Net return with govt pmts 170.99 116.99 50.14 6.28Labor & management charge 39.77 27.01 17.18 26.02Net return over lbr & mgt 131.21 89.99 32.97 -19.74










Perennial Irrigated IrrigatedRye Grass Canola Pumpkins Strawberries


Acres 438.45 215.58 12.18 2.61Yield per acre 693.06 14.60 617.44 6868.69Operators share of yield % 100.00 100.00 100.00 100.00Value 0.70 15.39 3.15 2.14Total product return per acre 485.88 224.72 1947.65 14713.24

17.05 23.32 - -Other crop income per acre 2.39 1.30 - -Gross return per acre 505.32 249.34 1947.65 14713.24

Direct Expenses Seed 17.30 50.84 89.00 -Fertilizer 114.23 93.97 352.04 334.90Crop chemicals 50.87 13.62 86.31 334.06Crop insurance 10.12 12.45 - 54.64Drying expense 1.35 - - -Irrigation Energy - - 24.78 67.21Packaging and Supplies - - 41.20 409.40Fuel & oil 23.06 16.54 67.53 228.98Repairs 28.88 17.56 75.30 453.43Custom hire and Trucking 7.81 10.24 180.62 564.75Hired labor - 2.06 124.33 2526.12Land Rent 38.56 34.07 35.27 2.61Operating interest 4.46 3.75 12.98 7.53Miscellaneous 0.16 0.01 66.91 1325.63

Total direct expenses per acre 299.67 257.78 1156.29 6513.36Return over direct exp per acre 205.65 -8.44 791.37 8199.88

Overhead Expenses Hired labor 13.45 14.57 81.39 662.63Mach and bldg leases 2.84 1.62 3.89 223.03RE & pers. property taxes 3.10 1.84 8.68 115.86Farm insurance 8.06 4.22 31.22 155.74Utilities 4.94 4.18 5.75 204.10Dues & professional fees 3.55 3.55 42.49 370.32Interest 6.57 4.35 3.69 459.92Mach & bldg depreciation 43.72 30.81 174.21 587.37Miscellaneous 3.23 1.08 53.03 283.68

Total overhead expenses per acre 89.47 66.23 404.37 2858.54Total dir & ovhd expenses per acre 389.14 324.01 1560.65 9371.90Net return per acre 116.18 -74.67 387.00 5341.34

Government payments 13.21 14.75 - -Net return with govt pmts 129.39 -59.92 387.00 5341.34Labor & management charge 38.61 28.73 264.70 2418.15Net return over lbr & mgt 90.77 -88.64 123.76 2923.18










Livestock Enterprise AnalysisFarm Business Management Statewide Data

(Farms Sorted By Return to Overhead) **** Dairy -- Average Per Cwt. Of Milk **** Excluding Organic & Organic Transition



Quantity Value Quantity Value Quantity ValueMilk sold (hd) 99.21 17.61 99.12 17.51 99.46 18.15Dairy Calves sold (hd) 0.00 0.59 0.00 0.69 0.00 0.53Transferred out (hd) 0.00 0.20 0.00 0.15 0.00 0.26Cull sales (hd) 0.00 1.48 0.00 1.47 0.00 1.52Other income 0.21 0.19 0.17Purchased (hd) 0.00 -0.11 0.00 -0.07 0.00 -0.03Transferred in (hd) 0.00 -0.37 0.00 -0.13 0.00 -0.68Inventory change (hd) 0.00 0.20 0.00 0.18 0.00 0.26Dairy repl net cost -2.38 -2.72 -1.67Gross margin 17.42 17.26 18.51

Direct ExpensesProtein Vit Minerals (lb.) 14.37 3.26 12.02 2.86 15.49 3.18Complete Ration (lb.) 6.63 1.24 8.48 2.01 6.52 0.72Corn (bu.) 0.28 1.00 0.27 0.96 0.29 1.00Corn Silage (lb.) 78.54 1.38 79.98 1.41 77.24 1.39Hay, Alfalfa (lb.) 11.08 0.79 11.74 0.83 9.17 0.64Haylage, Alfalfa (lb.) 16.98 0.59 18.94 0.64 17.21 0.58Other feed stuffs (lb) 11.14 0.52 7.91 0.34 10.73 0.66Breeding fees 0.22 0.21 0.20Veterinary 0.45 0.44 0.43BST 0.21 0.15 0.23Supplies 1.06 0.97 0.99Fuel & oil 0.30 0.26 0.31Repairs 0.65 0.62 0.62Custom hire 0.26 0.23 0.29Hired labor 0.92 1.10 0.34Marketing 0.19 0.22 0.18Bedding 0.33 0.40 0.31

Total direct expenses 13.37 13.64 12.07Return over direct expense 4.05 3.61 6.44

Overhead ExpensesHired labor 0.87 0.47 1.52Building leases 0.21 0.13 0.24Utilities 0.30 0.32 0.28Interest 0.33 0.38 0.28Mach & bldg depreciation 0.71 0.71 0.85Miscellaneous 0.43 0.44 0.40

Total overhead expenses 2.85 2.45 3.57Total dir & ovhd expenses 16.22 16.09 15.64Net return 1.20 1.17 2.87

Labor & management charge 0.90 0.88 0.97Net return over lbr & mgt 0.31 0.29 1.90

Cost of Production Per Cwt. Of MilkTotal direct expense per unit 13.37 13.64 12.07Total dir& ovhd expense per unit 16.22 16.09 15.64With other revenue adjustments 16.52 16.46 15.37With labor and management 17.42 17.34 16.34

Est. labor hours per unit 0.17 0.17 0.16

Other InformationNumber of cows 189.6 163.7 258.4Milk produced per cow 24,034 23,703 26,173Total milk sold 4,521,665 3,847,052 6,726,171Lb. of milk sold per FTE 1,618,202 1,661,967 1,764,852Culling percentage 30.5 29.3 33.3Turnover rate 37.5 36.7 39.1Cow death loss percent 6.5 6.8 5.6Percent of barn capacity 111.2 110.5 112.7Feed cost per day 5.77 5.88 5.86Feed cost per cwt. of milk 8.77 9.05 8.17Feed cost per cow 2,107.76 2,145.55 2,139.07Avg. milk price per cwt. 17.75 17.67 18.24Milk price / feed margin 8.98 8.62 10.07



(Farms Sorted By Return to Overhead) **** Dairy -- Average Per Cow **** Excluding Organic & Organic Transition



Quantity Value Quantity Value Quantity ValueMilk sold (hd) 23,844.5 4,231.96 23,494.1 4,150.66 26,031.5 4,749.25Dairy Calves sold (hd) 0.3 140.90 0.4 162.53 0.3 137.85Transferred out (hd) 0.6 47.26 0.6 34.97 0.6 68.23Cull sales (hd) 0.3 355.40 0.3 347.93 0.3 398.13Other income 49.68 44.02 45.53Purchased (hd) 0.0 -26.73 0.0 -17.61 0.0 -8.83Transferred in (hd) 0.4 -88.83 0.4 -30.29 0.4 -176.95Inventory change (hd) 0.0 48.48 0.0 43.64 0.0 69.09Dairy repl net cost -572.12 -645.55 -438.23Gross margin 4,186.66 4,090.95 4,844.06

Direct ExpensesProtein Vit Minerals (lb.) 3,453.0 782.64 2,848.8 677.05 4,055.5 833.27Complete Ration (lb.) 1,592.9 297.32 2,011.0 476.54 1,705.5 188.40Corn (bu.) 68.2 239.17 63.6 228.38 75.3 260.60Corn Silage (lb.) 18,876.3 332.46 18,957.7 334.95 20,214.9 363.88Hay, Alfalfa (lb.) 2,663.3 188.85 2,782.9 196.19 2,400.5 168.34Haylage, Alfalfa (lb.) 4,080.7 141.27 4,489.3 151.32 4,504.3 152.29Other feed stuffs (lb) 2,676.6 126.05 1,874.6 81.11 2,807.5 172.29Breeding fees 53.40 50.17 53.10Veterinary 109.20 104.02 111.48BST 49.95 35.71 59.59Supplies 255.35 230.06 260.11Fuel & oil 72.39 60.60 81.63Repairs 156.98 146.85 163.39Custom hire 61.29 53.99 74.83Hired labor 221.17 260.75 87.80Marketing 46.63 51.60 47.55Bedding 78.58 94.84 80.74

Total direct expenses 3,212.70 3,234.14 3,159.28Return over direct expense 973.96 856.81 1,684.78


Total overhead expenses 684.48 580.06 934.52Total dir & ovhd expenses 3,897.18 3,814.20 4,093.80Net return 289.48 276.74 750.26







(Farms Sorted By Return to Overhead) Organic Dairy -- Average Per Cow



Quantity Value Quantity Value Quantity ValueMilk sold (hd) 13,916.8 4,797.07 12,347.2 4,197.13 17,439.4 6,019.60Dairy Calves sold (hd) 0.1 45.18 0.2 87.73 0.1 34.01Transferred out (hd) 0.9 64.34 0.8 83.47 0.9 54.94Cull sales (hd) 0.2 288.89 0.2 200.06 0.2 385.98Other income 143.88 150.59 106.17Purchased (hd) 0.0 -14.06 - - 0.0 -28.55Transferred in (hd) 0.3 -81.94 0.3 - 0.4 -166.36Inventory change (hd) 0.1 91.21 0.1 90.11 0.1 81.17Dairy repl net cost -564.98 -635.92 -423.55Gross margin 4,779.43 4,173.18 6,063.41

Direct ExpensesProtein Vit Minerals (lb.) 776.2 309.56 778.6 204.04 891.1 431.85Corn (bu.) 23.4 234.47 - - 47.6 476.04Hay, Grass (lb.) 640.0 37.48 - - 1,299.4 76.10Haylage, Alfalfa (lb.) 3,583.2 134.37 - - 7,274.7 272.80Corn, Organic (bu.) 23.4 237.79 29.7 302.62 31.2 307.85Corn Silage, Organic (lb.) 8,417.5 206.95 10,703.4 251.41 9,981.5 219.98Hay, Alfalfa, Organic (lb.) 3,820.3 292.47 8,836.3 662.27 1,861.1 151.88Pasture, Organic (aum) 2.6 92.57 4.6 158.54 1.7 55.56Other feed stuffs (lb) 6,173.8 366.61 2,704.0 170.83 4,435.8 313.53Veterinary 38.21 27.37 56.35Supplies 269.46 211.61 326.05Fuel & oil 68.81 77.23 68.20Repairs 174.55 199.70 215.09Custom hire 67.12 18.79 80.32Hired labor 65.37 35.66 115.74Utilities 28.12 - 54.01Bedding 87.60 47.71 137.10

Total direct expenses 2,711.54 2,367.79 3,358.45Return over direct expense 2,067.89 1,805.39 2,704.96

Overhead ExpensesHired labor 202.90 189.98 254.97Utilities 68.10 98.31 45.95Interest 66.46 43.57 50.82Mach & bldg depreciation 134.96 115.70 156.85Miscellaneous 143.66 156.71 168.14

Total overhead expenses 616.08 604.28 676.73Total dir & ovhd expenses 3,327.62 2,972.07 4,035.18Net return 1,451.81 1,201.12 2,028.23

Labor & management charge 262.04 308.55 271.13Net return over lbr & mgt 1,189.77 892.56 1,757.10



Other InformationNumber of cows 101.2 77.1 129.6Milk produced per cow 14,389 12,918 17,731Total milk sold 1,408,384 952,277 2,260,146Lb. of milk sold per FTE 1,096,297 852,339 1,178,165Culling percentage 20.8 18.5 24.1Turnover rate 25.6 23.0 28.4Cow death loss percent 3.8 4.2 3.4Percent of barn capacity 104.2 112.2 112.1Feed cost per day 5.24 4.79 6.32Feed cost per cwt. of milk 13.29 13.54 13.00Feed cost per cow 1,912.28 1,749.72 2,305.58Avg. milk price per cwt. 34.47 33.99 34.52Milk price / feed margin 21.18 20.45 21.51



(Farms Sorted By Enterprise Size)**Dairy -- Average Per Cow -- By Herd Size** Excluding Organic & Organic Transition

Up to 50 100 200 Over50 100 200 500 500

Number of farms 43 128 101 66 23

Quantity Value Quantity Value Quantity Value Quantity Value Quantity ValueMilk sold (hd) 17,425.3 3,043.81 20,889.0 3,625.27 22,354.3 3,914.48 24,135.3 4,283.25 26,275.2 4,736.26Dairy Calves sold (hd) 0.2 89.70 0.3 115.61 0.3 114.04 0.3 124.94 0.4 187.71Transferred out (hd) 0.7 56.03 0.7 69.70 0.6 47.55 0.7 76.86 0.5 9.34Cull sales (hd) 0.3 276.78 0.3 343.54 0.3 329.73 0.3 344.04 0.3 393.61Other income 21.77 39.53 26.09 69.55 52.82Purchased (hd) 0.1 -82.54 0.0 -56.08 0.0 -46.16 0.0 -21.50 0.0 -2.39Transferred in (hd) 0.3 -65.55 0.4 -54.36 0.4 -58.32 0.4 -102.86 0.4 -111.76Inventory change (hd) 0.1 110.48 0.0 44.81 0.1 70.31 0.0 48.41 0.0 31.21Dairy repl net cost -496.24 -577.57 -594.41 -553.13 -579.01Gross margin 2,954.24 3,550.44 3,803.75 4,271.09 4,718.14

Direct ExpensesProtein Vit Minerals (lb.) 2,061.1 471.17 2,615.0 637.96 2,755.0 630.07 2,988.1 792.24 4,797.4 957.12Complete Ration (lb.) 1,506.0 248.02 1,343.6 223.52 3,252.5 376.76 1,497.2 370.54 722.7 212.67Corn (bu.) 62.3 212.27 61.8 212.23 63.1 213.78 66.7 235.94 76.2 271.99Corn Silage (lb.) 15,098.7 260.92 17,241.0 288.49 17,999.1 293.43 18,921.1 325.38 20,381.0 388.30Hay, Alfalfa (lb.) 4,279.2 312.40 4,281.3 320.96 3,574.9 243.13 2,500.7 165.86 1,420.2 110.07Haylage, Alfalfa (lb.) 3,392.5 139.76 2,938.8 113.64 3,221.9 116.61 4,859.0 157.49 4,443.3 153.82Other feed stuffs (lb) 1,130.2 78.28 2,179.8 94.36 3,605.4 113.83 2,261.4 169.79 2,792.7 110.19Breeding fees 34.13 50.67 46.78 53.26 60.45Veterinary 71.85 98.87 107.41 127.03 100.97BST 4.99 13.59 18.84 57.85 81.45Supplies 239.64 258.32 235.90 255.71 281.77Fuel & oil 58.63 57.43 71.10 74.80 78.33Repairs 101.02 132.19 142.13 160.29 178.24Custom hire 18.78 41.41 51.89 58.32 81.79Hired labor 9.05 50.12 138.05 294.05 295.27Hauling and trucking 74.66 61.83 51.33 29.99 36.32Bedding 33.96 57.44 81.57 88.70 79.55

Total direct expenses 2,369.53 2,713.04 2,932.61 3,417.24 3,478.29Return over direct expense 584.71 837.41 871.14 853.85 1,239.85

Overhead ExpensesHired labor 49.62 86.81 123.10 218.26 319.50Building leases 22.54 14.54 45.29 53.74 67.19Utilities 97.07 94.51 74.66 66.40 64.01Interest 63.60 86.30 98.61 90.73 56.18Mach & bldg depreciation 115.63 163.70 185.33 168.56 170.23Miscellaneous 110.38 119.71 106.01 107.91 88.41

Total overhead expenses 458.83 565.58 633.00 705.60 765.52Total dir & ovhd expenses 2,828.36 3,278.62 3,565.60 4,122.84 4,243.80Net return 125.88 271.82 238.15 148.25 474.34

Labor & management charge 422.57 334.86 264.83 172.34 158.13Net return over lbr & mgt -296.70 -63.04 -26.69 -24.09 316.20

Cost of Production Per Cwt. Of MilkTotal direct expense per unit 13.54 12.90 13.06 13.98 13.16Total dir& ovhd expense per unit 16.16 15.59 15.87 16.86 16.06With other revenue adjustments 16.73 16.05 16.44 17.10 16.21With labor and management 19.15 17.64 17.62 17.81 16.81

Est. labor hours per unit 48.59 39.14 34.98 41.58 45.34

Other InformationNumber of cows 39.9 73.2 142.2 314.4 967.6Milk produced per cow 17,504 21,034 22,462 24,452 26,425Total milk sold 695,603 1,529,977 3,178,785 7,587,702 25,422,931Lb. of milk sold per FTE 1,004,196 1,494,500 1,789,273 1,625,254 1,622,724Culling percentage 25.1 29.2 28.2 29.9 33.6Turnover rate 33.7 36.6 34.8 37.2 40.2Cow death loss percent 7.2 6.4 6.0 6.8 6.6Percent of barn capacity 91.4 105.7 108.5 117.1 112.2Feed cost per day 4.72 5.18 5.45 6.07 6.04Feed cost per cwt. of milk 9.84 8.99 8.85 9.07 8.34Feed cost per cow 1,722.82 1,891.17 1,987.62 2,217.24 2,204.16Avg. milk price per cwt. 17.47 17.35 17.51 17.75 18.03Milk price / feed margin 7.63 8.36 8.66 8.68 9.68


Summary of Selected Dairy Enterprise Factors


7.00

14.50

22.00

29.50

2011 2012 2013 2014 2015

19.84 19.47 20.20

24.36

17.75

Ave Milk Price Recv'd

4

8

12

2011 2012 2013 2014 2015

8.83

10.19 10.37 10.22

8.77

Feed Cost per CWT

22,315 22,774 23,087

23,765 24,034

19,000

22,000

25,000

2011 2012 2013 2014 2015

Milk Production per Cow

$524

$290 $287

$1,249

$289

$0

$750

$1,500

2011 2012 2013 2014 2015

Net Return per Cow

Grain/Conc, $5.75

Forages, $3.02

Other Direct, $4.60

Overhead, $2.85

Dairy Cow Costs of Production

(Per CWT Produced)

159.8

170.1178.9 184.4 189.6

100

150

200

2011 2012 2013 2014 2015

Ave. Number of Cows

8

14

20

2011 2012 2013 2014 2015

16.2717.44 17.81 18.38

16.22

Dir & Ovhd Exp per CWT

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(Farms Sorted By Return to Overhead)*Dairy and Repl Heifers -- Average Per Cow * Excluding Organic & Organic Transition



Quantity Value Quantity Value Quantity ValueMilk sold (hd) 23,865.7 4,228.74 23,080.2 4,045.97 25,736.1 4,650.79Dairy Calves sold (hd) - 202.01 - 233.67 - 236.08Transferred out (hd) - 31.00 - 24.83 - 35.18Cull sales (hd) - 362.66 - 354.06 - 416.22Other income 53.47 46.80 59.68Purchased (hd) - -49.27 - -36.31 - -25.22Transferred in (hd) - -16.31 - -6.77 - -0.59Inventory change (hd) - 72.56 - 61.24 - 75.70Gross margin 4,885.65 4,724.24 5,447.84

Direct ExpensesProtein Vit Minerals (lb.) 3,835.4 849.28 2,764.6 701.56 4,233.3 943.76Complete Ration (lb.) 1,668.4 374.18 2,026.7 511.51 955.4 232.09Corn (bu.) 71.6 253.50 73.3 263.91 73.4 258.43Corn Silage (lb.) 22,919.4 400.62 23,116.6 377.27 23,660.0 416.56Hay, Alfalfa (lb.) 3,460.8 239.16 3,442.7 231.28 3,791.4 254.91Haylage, Alfalfa (lb.) 4,579.0 155.12 5,353.4 168.73 4,040.6 137.83Other feed stuffs (lb) 4,008.2 203.61 3,646.1 173.22 4,443.6 239.92Breeding fees 70.70 56.31 69.82Veterinary 128.99 116.40 145.58Supplies 350.61 324.29 293.65Contract production exp. 116.12 99.79 69.03Fuel & oil 81.04 65.64 91.26Repairs 184.29 171.85 200.35Custom hire 64.73 51.85 79.85Hired labor 260.25 317.24 160.33Bedding 96.89 114.68 91.45

Total direct expenses 3,829.10 3,745.55 3,684.83Return over direct expense 1,056.55 978.70 1,763.01


Total overhead expenses 760.44 631.64 1,031.35Total dir & ovhd expenses 4,589.54 4,377.19 4,716.18Net return 296.11 347.05 731.67






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Dairy Replacement Heifers -- Average Per Head



Quantity Value Quantity Value Quantity ValueReplacements sold (hd) 0.1 61.52 0.1 69.11 0.1 67.19Transferred out (hd) 0.5 640.32 0.4 630.18 0.4 763.60Cull sales (hd) 0.0 5.71 0.0 3.57 0.0 11.60Other income 1.47 1.00 2.50Purchased (hd) 0.0 -28.18 0.0 -0.16 0.0 -46.12Transferred in (hd) 0.6 -161.31 0.6 -142.69 0.6 -155.26Inventory change (hd) 0.0 24.60 0.0 -2.00 0.1 88.86Gross margin 544.14 559.00 732.37

Direct ExpensesProtein Vit Minerals (lb.) 500.1 73.32 300.0 75.67 227.5 49.25Milk Replacer (lb.) 10.4 13.32 14.7 15.79 9.5 11.54Milk (lb.) 138.9 22.03 177.4 24.00 188.5 33.95Complete Ration (lb.) 321.3 61.00 273.2 50.61 519.4 72.73Corn (bu.) 4.9 16.94 2.8 10.08 5.2 18.61Corn Silage (lb.) 4,231.1 72.84 4,000.0 70.39 2,831.9 47.96Hay, Alfalfa (lb.) 807.8 52.12 855.1 57.60 611.9 38.76Hay, Grass (lb.) 671.0 29.42 676.3 28.48 512.4 21.87Haylage, Alfalfa (lb.) 1,017.0 32.00 1,915.5 57.90 582.4 20.03DDGS, wet (lb.) 356.8 16.35 1,266.5 60.71 226.6 7.02Other feed stuffs (lb) 1,191.9 33.56 1,627.5 44.62 1,526.6 26.83Breeding fees 16.14 15.09 14.42Veterinary 16.69 11.48 17.29Supplies 20.77 18.45 16.71Contract production exp. 106.63 63.18 31.91Fuel & oil 12.45 11.33 12.08Repairs 26.82 20.74 28.99Hired labor 24.09 28.41 9.31Bedding 18.49 19.29 14.54

Total direct expenses 664.97 683.83 493.81Return over direct expense -120.83 -124.83 238.56

Overhead ExpensesHired labor 35.10 35.05 35.95Utilities 12.69 10.28 16.63Interest 13.74 13.92 17.20Mach & bldg depreciation 27.81 25.69 33.73Miscellaneous 26.51 23.33 31.26

Total overhead expenses 115.85 108.26 134.78Total dir & ovhd expenses 780.82 792.09 628.59Net return -236.68 -233.09 103.78

Labor & management charge 35.90 29.82 43.87Net return over lbr & mgt -272.58 -262.91 59.91

Cost of Production Per Head Per DayTotal direct expense per unit 2.25 2.26 1.62Total dir& ovhd expense per unit 2.57 2.55 1.99With other revenue adjustments 2.57 2.55 1.99With labor and management 2.67 2.64 2.11


Other InformationNo. purchased or trans in 108 123 89Number sold or trans out 95 109 78Average number of head 171 212 147Percentage death loss 7.5 6.5 5.7Feed cost per average head 422.90 495.85 348.56Feed cost/head sold/trans 764.20 962.41 652.54Total cost/head sold/trans 1,760.81 1,867.54 1,443.16Feed cost per head per day 1.16 1.36 0.95


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Dairy Feeder -- Average Per Cwt. Produced



Quantity Value Quantity Value Quantity ValueDairy Feeder sold (lb) 132.41 246.02 125.66 251.85 99.82 181.89Transferred out (lb) 1.88 2.49 - - - -Other income 0.74 - 0.91Purchased (lb) -36.29 -125.47 -3.13 -12.06 -1.45 -0.82Transferred in (lb) -9.82 -19.24 -28.00 -83.63 -27.30 -28.97Inventory change (lb) 11.17 3.11 5.47 4.39 28.13 18.86Gross margin 107.96 160.54 171.88

Direct ExpensesProtein Vit Minerals (lb.) 93.30 16.60 13.00 3.44 32.72 7.60Milk Replacer (lb.) 3.74 3.56 3.78 5.10 0.31 0.34Milk (lb.) 13.85 2.21 97.99 16.26 - -Creep / Starter (lb.) 23.47 3.75 - - 18.16 5.45Complete Ration (lb.) 45.67 8.07 247.52 53.21 19.86 3.18Corn (bu.) 6.62 22.81 1.62 5.59 9.99 34.84Hay, Alfalfa (lb.) 37.34 2.75 75.63 5.67 77.46 6.50Other feed stuffs (lb) 103.72 3.19 111.01 3.31 71.76 2.30Veterinary 6.21 7.94 0.96Supplies 3.92 2.07 1.70Fuel & oil 1.33 0.93 1.37Repairs 1.93 2.16 1.93Bedding 4.07 8.02 2.14


Overhead ExpensesHired labor 2.70 1.73 8.01Building leases 0.46 1.42 1.51RE & pers. property taxes 1.30 0.15 0.20Farm insurance 1.04 0.47 0.56Utilities 1.35 1.33 0.58Interest 1.58 1.46 1.12Mach & bldg depreciation 3.93 2.32 1.51Miscellaneous 1.40 0.40 2.06



Cost of Production Per Cwt. ProducedTotal direct expense per unit 164.77 163.15 78.47Total dir& ovhd expense per unit 175.03 170.54 94.05With other revenue adjustments 175.03 170.54 94.05With labor and management 179.30 172.49 96.32


Other InformationNo. purchased or trans in 65 51 161Number sold or trans out 149 46 135Percentage death loss 11.2 3.7 3.1Avg. daily gain (lb.) 2.03 1.62 1.99Lb. of conc / lb. of gain 5.40 3.59 6.38Lb. of feed / lb. of gain 6.53 5.99 7.49Feed cost per cwt. of gain 62.93 92.58 60.21Feed cost per head 207.57 268.16 290.45Avg wgt / Dairy Feeder sold 507 433 435Avg sales price / cwt. 185.81 200.42 182.22


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Dairy Finishing -- Average Per Cwt. Produced



Quantity Value Quantity Value Quantity ValueDairy Finish sold (lb) 117.43 159.12 117.88 160.27 94.37 128.32Transferred out (lb) 0.13 0.18 0.08 0.10 - -Cull sales (lb) 0.09 0.22 - - 0.77 1.75Other income 2.14 2.68 1.34Purchased (lb) -28.35 -65.02 -39.89 -90.74 -4.45 -13.32Transferred in (lb) -2.06 -4.60 -0.65 -1.40 -5.58 -12.14Inventory change (lb) 11.46 -3.84 21.41 13.78 13.84 13.60Gross margin 88.19 84.69 119.55

Direct ExpensesProtein Vit Minerals (lb.) 58.96 12.40 45.62 11.21 78.78 9.66Complete Ration (lb.) 77.02 7.11 97.52 5.17 47.18 5.74Corn (bu.) 9.66 32.72 9.19 30.90 9.27 31.42Corn Silage (lb.) 183.51 3.19 239.83 4.52 87.28 1.57Hay, Grass (lb.) 29.53 1.17 30.77 1.30 51.30 2.29DDGS, dry (lb.) 33.55 2.21 34.53 2.12 - -Other feed stuffs (lb) 125.59 4.47 155.55 3.44 73.90 4.57Veterinary 2.34 2.05 1.30Supplies 3.63 1.96 3.51Fuel & oil 1.48 1.77 0.98Repairs 2.50 3.04 2.78Hauling and trucking 1.14 1.17 0.73Bedding 1.45 0.89 1.36Operating interest 1.85 3.02 0.08


Overhead ExpensesHired labor 1.39 0.57 2.37Farm insurance 1.24 1.49 1.07Utilities 1.03 0.83 1.38Interest 2.09 3.73 2.42Mach & bldg depreciation 3.63 4.23 2.95Miscellaneous 2.31 1.55 1.38





Other InformationNo. purchased or trans in 174 304 100Number sold or trans out 146 243 71Percentage death loss 2.7 1.9 3.0Avg. daily gain (lb.) 2.57 2.88 2.51Lb. of conc / lb. of gain 7.89 8.26 6.50Lb. of feed / lb. of gain 9.15 9.57 7.88Feed cost per cwt. of gain 63.28 58.66 55.24Feed cost per head 681.52 595.81 661.87Average purchase weight 362 400 128Avg wgt / Dairy Finish sold 1,433 1,438 1,418Avg purch price / head 829.28 910.93 381.92Avg sales price / cwt. 135.50 135.96 135.98




Beef Finishing -- Average Per Cwt. Produced



Quantity Value Quantity Value Quantity ValueFinish Beef sold (lb) 193.29 286.56 216.60 326.22 151.76 225.03Transferred out (lb) 0.55 1.27 1.30 1.63 0.86 5.30Cull sales (lb) 0.10 0.18 - - - -Other income 2.72 5.31 3.16Purchased (lb) -81.86 -178.72 -84.82 -158.64 -36.63 -76.08Transferred in (lb) -6.58 -12.31 -4.03 -7.66 -30.66 -57.68Inventory change (lb) -6.79 -57.53 -29.94 -134.04 13.16 0.10Gross margin 42.16 32.82 99.82

Direct ExpensesProtein Vit Minerals (lb.) 32.95 7.63 22.26 7.04 30.38 5.89Complete Ration (lb.) 12.61 0.95 0.33 0.20 38.66 4.46Corn (bu.) 7.75 26.09 5.84 19.26 9.08 31.43Corn Silage (lb.) 412.76 6.36 810.59 11.41 362.01 5.81Corn, Ear (lb.) 26.05 1.32 41.02 2.34 5.80 0.23Hay, Alfalfa (lb.) 26.20 1.43 33.09 1.60 31.90 1.66Hay, Grass (lb.) 51.33 1.98 13.93 0.62 97.65 3.50DDGS, dry (lb.) 72.04 4.48 148.92 9.90 28.33 1.42DDGS, wet (lb.) 80.88 1.98 75.41 2.83 - -Other feed stuffs (lb) 63.03 2.20 28.61 1.04 177.32 1.91Veterinary 2.06 1.06 1.30Supplies 4.06 1.88 4.54Fuel & oil 1.87 1.91 1.37Repairs 3.49 6.89 2.26Hired labor 0.70 0.19 1.46Hauling and trucking 0.93 3.22 0.32Operating interest 2.67 2.44 1.12

Total direct expenses 70.21 73.84 68.69Return over direct expense -28.04 -41.02 31.14

Overhead ExpensesHired labor 2.83 0.74 0.01Farm insurance 1.50 1.41 1.66Interest 1.15 1.66 1.00Mach & bldg depreciation 6.19 8.30 3.07Miscellaneous 2.51 2.67 1.71





Other InformationNo. purchased or trans in 221 175 154Number sold or trans out 231 233 131Percentage death loss 1.0 1.2 1.0Avg. daily gain (lb.) 2.49 2.03 2.00Lb. of conc / lb. of gain 6.79 6.22 6.28Lb. of feed / lb. of gain 9.15 9.55 9.33Feed cost per cwt. of gain 54.42 56.25 56.32Feed cost per head 373.10 278.01 446.47Average purchase weight 690 714 527Avg wgt / Finish Beef sold 1,413 1,296 1,390Avg purch price / cwt. 218.32 187.03 207.73Avg sales price / cwt. 148.25 150.61 148.28


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Beef Cow-Calf -- Average Per Cow



Quantity Value Quantity Value Quantity ValueBeef Calves sold (lb) 198.7 410.23 182.8 381.47 258.1 494.89Transferred out (lb) 234.0 449.10 229.8 425.32 279.8 638.44Cull sales (lb) 56.9 146.47 22.0 114.72 81.5 216.61Other income 7.84 6.32 3.50Purchased (lb) -21.3 -231.89 -0.6 -241.47 -2.0 -392.40Transferred in (lb) -34.6 -71.36 -9.5 -77.44 -66.3 -89.83Inventory change (lb) 52.8 153.57 -1.8 198.46 -20.1 265.17Gross margin 863.96 807.37 1,136.38

Direct ExpensesBeet Pulp (dry) (lb.) 523.7 5.78 207.2 3.63 1,530.5 15.77Protein Vit Minerals (lb.) 256.3 49.19 198.1 42.14 141.1 37.53Corn (bu.) 2.8 9.39 0.3 1.05 5.3 17.89Corn Silage (lb.) 4,796.4 79.18 5,661.6 92.53 2,449.3 45.45Hay, Alfalfa (lb.) 1,075.8 58.41 730.6 41.02 1,245.5 70.18Hay, Grass (lb.) 3,664.9 139.05 2,941.8 115.16 3,031.0 96.12Pasture (aum) 4.6 56.44 7.0 78.05 3.6 44.61Other feed stuffs (lb) 1,527.8 41.45 2,202.1 53.46 1,306.9 38.93Veterinary 30.05 30.13 33.40Supplies 44.71 42.49 53.22Fuel & oil 25.91 25.90 26.10Repairs 43.65 40.34 34.95Custom hire 5.67 3.14 10.41Operating interest 11.05 16.21 12.11


Overhead ExpensesHired labor 9.72 9.35 7.27Farm insurance 14.54 17.05 11.18Utilities 13.31 14.85 7.78Dues & professional fees 6.87 4.54 9.86Interest 28.51 40.92 19.61Mach & bldg depreciation 52.78 43.98 46.01Miscellaneous 21.06 18.02 31.37


Labor & management charge 96.88 79.76 105.88Net return over lbr & mgt 20.35 -6.35 360.75



Other InformationNumber of cows 69.9 107.5 76.4Pregnancy percentage 96.1 97.6 96.2Pregnancy loss percentage 2.4 2.6 1.4Culling percentage 10.5 9.0 14.1Calving percentage 93.8 95.0 94.9Weaning percentage 89.9 90.7 92.3Calves sold per cow 0.80 0.76 1.01Calf death loss percent 4.5 5.3 2.4Cow death loss percent 2.0 2.3 1.6Cows per FTE 296.1 301.2 288.2Average weaning weight 510 534 474Lb. weaned/exposed female 459 485 438Feed cost per cow 438.89 427.04 366.48Avg wgt/ Beef Calves sold 573 554 591Avg price / cwt. 206.46 208.66 191.74



(Farms Sorted By Enterprise Size)

Beef Cow-Calf -- Average Per Cow

Up to 50 100 20050 100 200 500


Quantity Value Quantity Value Quantity Value Quantity ValueBeef Calves sold (lb) 179.8 363.71 252.5 538.23 153.7 336.57 198.2 374.96Transferred out (lb) 199.2 385.76 186.5 343.07 278.8 492.02 263.7 565.82Cull sales (lb) 57.3 133.42 39.8 93.82 107.9 126.99 22.4 234.92Other income 11.07 7.20 10.59 3.51Purchased (lb) -29.4 -185.14 -9.0 -81.67 -5.5 -218.60 -46.3 -446.21Transferred in (lb) -29.2 -114.33 -7.2 -18.59 -47.1 -109.27 -55.8 -61.98Inventory change (lb) 132.7 226.68 57.3 -71.53 51.1 245.17 -4.2 261.27Gross margin 821.17 810.54 883.48 932.28

Direct ExpensesProtein Vit Minerals (lb.) 302.2 64.30 240.5 48.07 358.8 61.36 135.6 27.50Complete Ration (lb.) 60.4 8.48 169.7 17.04 0.5 0.09 - -Corn (bu.) 5.6 18.91 1.9 5.91 2.5 8.11 2.4 8.25Corn Silage (lb.) 3,833.3 60.00 3,969.1 65.74 6,304.7 102.19 4,789.8 83.01Hay, Alfalfa (lb.) 2,308.0 111.60 1,356.9 76.15 1,010.2 60.98 - -Hay, Grass (lb.) 4,077.7 152.92 4,279.5 145.33 2,762.9 99.29 3,643.8 164.44Pasture (aum) 2.5 34.06 3.0 51.55 6.3 52.82 5.9 80.78Straw (lb.) 201.2 2.49 259.8 2.60 38.0 1.03 608.6 15.79Other feed stuffs (lb) 818.7 24.79 2,040.4 20.50 2,030.9 49.19 1,606.7 43.87Veterinary 33.39 25.87 34.79 27.51Supplies 46.47 47.70 45.03 41.97Fuel & oil 29.02 27.34 20.52 27.86Repairs 52.28 51.77 29.95 43.11Bedding 7.74 1.71 11.73 0.24Operating interest 8.93 5.11 11.89 18.29

Total direct expenses 655.37 592.39 588.96 582.63Return over direct expense 165.79 218.15 294.52 349.65

Overhead ExpensesHired labor 6.49 10.52 11.64 8.96RE & pers. property taxes 12.31 11.35 3.90 3.49Farm insurance 17.73 16.06 12.41 12.92Utilities 22.23 10.19 17.51 6.42Interest 38.25 25.17 12.15 42.91Mach & bldg depreciation 61.60 54.22 26.71 72.63Miscellaneous 33.53 15.45 24.40 13.29

Total overhead expenses 192.14 142.97 108.72 160.61Total dir & ovhd expenses 847.51 735.36 697.68 743.24Net return -26.34 75.18 185.80 189.04

Labor & management charge 137.27 102.12 62.82 99.61Net return over lbr & mgt -163.61 -26.94 122.98 89.44

Cost of Production Per Cwt. ProducedTotal direct expense per unit 126.35 113.06 107.63 153.93Total dir& ovhd expense per unit 163.39 140.34 127.49 196.37With other revenue adjustments 155.61 137.17 128.82 155.18With labor and management 182.07 156.66 140.30 181.49

Est. labor hours per unit 13.18 8.97 7.77 9.27

Other InformationNumber of cows 24.2 72.2 126.9 293.4Pregnancy percentage 94.6 95.7 96.0 97.6Pregnancy loss percentage 2.1 3.1 1.8 2.3Culling percentage 10.5 6.7 9.4 16.1Calving percentage 92.6 92.8 94.3 95.4Weaning percentage 88.7 88.1 91.5 91.2Calves sold per cow 0.72 0.78 0.77 0.91Calf death loss percent 4.9 5.2 4.0 4.0Cow death loss percent 2.8 2.2 2.0 1.3Cows per FTE 212.5 312.0 360.6 302.0Average weaning weight 512 523 510 496Lb. weaned/exposed female 454 461 466 453Feed cost per cow 477.54 432.90 435.06 423.64Avg wgt/ Beef Calves sold 516 602 550 590Avg price / cwt. 202.34 213.19 218.92 189.18




Hogs, Finish Feeder Pigs -- Average Per Cwt. Carcass Sold



Quantity Value Quantity Value Quantity ValueFinish Hogs sold (lb) 135.47 74.27 134.57 69.93 135.06 79.05Transferred out (lb) 0.00 0.00 0.00 0.00 - -Cull sales (lb) 0.24 0.10 - - - -Other income 2.16 2.13 0.02Purchased (lb) -19.54 -25.34 -13.18 -16.80 -20.78 -28.18Transferred in (lb) -4.86 -4.84 -13.64 -11.47 - -Inventory change (lb) 0.91 -2.98 11.42 -0.88 0.54 0.09Gross margin 43.37 42.91 50.99

Direct ExpensesProtein Vit Minerals (lb.) 47.16 7.29 34.27 6.53 52.44 10.57Complete Ration (lb.) 158.78 16.45 206.80 21.36 98.03 9.52Corn (bu.) 2.18 7.95 1.75 6.40 2.60 9.46Other feed stuffs (lb) 3.58 0.30 3.24 0.30 7.65 0.57Veterinary 0.72 1.29 0.28Supplies 0.72 1.26 0.88Contract production exp. 0.78 - -Fuel & oil 0.39 0.14 0.42Repairs 0.65 0.46 1.06Custom hire 0.58 0.16 0.69Hired labor 0.59 0.25 0.24Livestock leases 0.40 - -Utilities 0.24 0.12 0.40Hauling and trucking 0.51 1.23 0.66Operating interest 0.75 0.63 1.07


Overhead ExpensesHired labor 0.36 0.58 0.39Building leases 2.21 2.88 2.09Farm insurance 0.46 0.79 0.40Utilities 0.37 0.76 0.26Interest 0.41 0.18 1.04Mach & bldg depreciation 1.12 0.65 2.30Miscellaneous 0.54 0.36 0.70



Cost of Production/Cwt. Carcass SoldTotal direct expense per unit 71.36 69.28 63.90Total dir& ovhd expense per unit 76.83 75.49 71.08With other revenue adjustments 74.70 73.37 71.08With labor and management 76.39 75.33 73.47


Other InformationNo. purchased or trans in 9,930 9,762 9,015Number sold or trans out 9,544 8,605 8,672Percentage death loss 2.8 2.5 3.1Percent substandard hogs 1 1 1Avg. daily gain (lb.) 1.71 1.76 1.84Lb. of feed / lb. of gain 2.95 2.87 2.64Feed cost per cwt. of gain 28.49 29.02 26.23Feed cost per head 67.00 68.89 64.19Average purchase weight 46 42 42Avg wgt / Finish Hogs sold 272 282 281Avg purch price / head 59.36 53.89 56.40Avg sales price / cwt. 54.82 51.96 58.53Average carcass weight 203 212 211Average price / cwt. carcass 73.67 69.22 78.04




Hogs, Weaning to Finish -- Average Per Head



Quantity Value Quantity Value Quantity ValueWean-Fin Pig sold (lb) 282.7 155.23 276.9 148.81 289.3 165.20Transferred out (lb) 0.6 0.47 0.4 0.36 1.0 0.94Cull sales (lb) 1.4 0.40 - - 2.7 0.74Other income 7.76 9.22 10.33Purchased (lb) -17.2 -44.29 -13.2 -43.18 -22.4 -46.35Transferred in (lb) -0.8 -2.24 -1.1 -3.19 -0.3 -0.91Inventory change (lb) -3.9 -13.38 -6.8 -15.27 -6.2 -2.85Gross margin 103.99 96.75 127.10

Direct ExpensesProtein Vit Minerals (lb.) 135.4 26.14 156.0 32.95 166.4 22.78Complete Ration (lb.) 137.8 16.95 17.2 6.98 196.4 21.92Corn (bu.) 7.1 25.53 8.4 31.13 5.4 19.87DDGS, dry (lb.) 35.1 2.53 - - 85.2 6.22Other feed stuffs (lb) 4.3 2.05 7.0 0.51 0.3 0.21Veterinary 3.35 2.42 3.93Supplies 2.32 2.79 2.04Contract production exp. 4.92 1.57 6.97Repairs 1.47 1.62 1.25Custom hire 1.84 0.37 2.58Hired labor 1.01 1.09 1.48Livestock leases 0.96 1.29 -Utilities 0.42 0.95 0.37Hauling and trucking 1.16 0.53 1.45Marketing 0.69 1.10 0.52


Overhead ExpensesHired labor 1.45 0.05 1.03Building leases 6.10 9.34 4.61Farm insurance 0.83 0.87 0.59Dues & professional fees 0.45 0.17 0.97Interest 0.77 0.88 0.83Mach & bldg depreciation 2.11 1.48 1.63Miscellaneous 1.28 0.44 1.81



Cost of Production/Cwt. Carcass SoldTotal direct expense per unit 72.07 71.60 65.68Total dir& ovhd expense per unit 78.27 78.05 71.02With other revenue adjustments 74.60 73.57 66.21With labor and management 76.06 76.46 67.14


Other InformationNo. purchased or trans in 16,502 15,137 21,815Number sold or trans out 15,997 14,663 21,136Percentage death loss 4.1 5.0 4.2Percent substandard hogs 2 2 1Avg. daily gain (lb.) 1.42 1.57 1.42Lb. of feed / lb. of gain 2.73 2.54 2.84Feed cost per cwt. of gain 27.83 27.93 26.88Feed cost per head 73.20 71.56 71.00Average purchase weight 17 13 20Avg wgt / Wean-Fin Pig sold 270 269 264Avg purch price / head 42.78 43.73 40.53Avg sales price / cwt. 54.90 53.74 57.11Average carcass weight 203 203 198Average price / cwt. carcass 73.69 71.82 76.61


2011 2012 2013 2014 2015 Total Dir&Ovhd ExpenseAlfalfa HayYield per Acre 3.6 3.3 3.3 4.0 3.9Value per Ton $89.32 $131.79 $153.38 $176.49 $153.84Fuel, Oil, Repairs per Acre $83.79 $95.25 $91.09 $114.57 $83.10Total Dir & Ovhd Exp per Acre $247.68 $302.02 $302.28 $379.84 $329.25Net Return per Acre $74.89 $150.49 $218.54 $337.71 $292.23Total Direct Expenses per Ton $37.68 $50.72 $51.79 $48.66 $42.09Total Dir & Ovhd Exp per Ton $69.17 $91.87 $91.64 $94.13 $84.09

CornYield per Acre 121.7 128.9 108.5 118.8 164.2Value per Bushel $5.72 $6.49 $4.02 $3.42 $3.30Fuel, Oil, Repairs per Acre $87.13 $88.45 $88.78 $87.92 $80.80Total Dir & Ovhd Exp per Acre $465.97 $530.74 $553.77 $581.67 $562.75Net Return per Acre $248.53 $320.53 -$44.10 -$75.40 -$0.05Total Direct Expenses per Bu. $2.77 $2.97 $3.71 $3.43 $2.40Total Dir & Ovhd Exp per Bushel $3.83 $3.91 $5.11 $4.90 $3.43

Corn SilageYield per Acre 15.2 15.1 11.7 14.3 19.5Value per Ton $39.05 $50.65 $40.01 $35.05 $34.46Fuel, Oil, Repairs per Acre $98.93 $103.50 $100.48 $122.88 $93.91

Total Dir & Ovhd Exp per Acre $458.64 $495.91 $504.52 $576.47 $554.58Net Return per Acre $157.19 $285.57 $155.90 $9.68 $120.30Total Direct Expenses per Ton $21.60 $22.91 $31.22 $27.70 $19.47Total Dir & Ovhd Exp per Ton $30.09 $32.86 $43.05 $40.28 $28.43

SoybeansYield per Acre 31.5 37.8 33.4 33.0 38.1Value per Bushel $11.41 $13.87 $12.52 $9.73 $8.33Fuel, Oil, Repairs per Acre $49.03 $49.01 $45.26 $46.04 $38.24Total Dir & Ovhd Exp per Acre $259.44 $285.21 $288.53 $289.37 $288.14Net Return per Acre $112.02 $243.72 $139.81 $52.87 $43.58Total Direct Expenses per Bu. $5.53 $5.15 $5.76 $5.81 $4.94Total Dir & Ovhd Exp per Bushel $8.23 $7.55 $8.65 $8.76 $7.57

Spring Wheat Yield per Acre 48.0 60.8 66.5 60.2 66.0Value per Bushel $7.99 $8.30 $6.24 $5.62 $4.96Fuel, Oil, Repairs per Acre $44.65 $50.14 $44.21 $43.17 $38.15Total Dir & Ovhd Exp per Acre $301.89 $328.49 $329.01 $320.40 $299.33Net Return per Acre $97.69 $182.39 $95.54 $32.83 $40.40Total Direct Expenses per Bu. $4.63 $4.01 $3.56 $3.77 $3.19Total Dir & Ovhd Exp per Bushel $6.29 $5.40 $4.95 $5.32 $4.54

Beef Cow CalfPrice Recv'd/Cwt Calf Sold $132.13 $146.91 $152.83 $212.33 $206.46Total Feed Cost/Cow $388.03 $445.53 $479.03 $508.48 $438.89Return over Feed/Cow $380.97 $354.44 $298.68 $786.66 $425.07Net Return/Cow $127.61 $88.27 $36.61 $451.63 $117.23Total Direct & Ovhd Expenses $641.39 $711.70 $741.10 $843.51 $746.72

Dairy CowsProduction/Cow 22,343 22,774 23,087 23,765 24,034Price Recv'd/Cwt Milk $19.84 $19.47 $20.20 $24.36 $17.75Total Feed Cost/Cwt Milk $8.82 $10.19 $10.37 $10.22 $8.77Return over Feed/Cwt Milk $9.79 $8.53 $8.69 $13.42 $8.65Net Return/Cwt Milk $2.35 $1.27 $1.24 $5.26 $1.20Total Direct & Ovhd Expenses $16.27 $17.44 $17.81 $18.38 $16.22


Selected Crop & Livestock Enterprise Trend Summary


248 302 302

380 329

$0

$100

$200

$300

$400

2011 2012 2013 2014 2015

466 531 554 582 563

$0

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2011 2012 2013 2014 2015

459 496 505 576 555

$0

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$600

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2011 2012 2013 2014 2015

259

285 289 289 288

$240

$260

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2011 2012 2013 2014 2015

302

328 329 320

299

$280

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2011 2012 2013 2014 2015

641 712 741

844 747

$0

$500

$1,000

2011 2012 2013 2014 2015

16 17 18

18

16

$14

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$18

$20

2011 2012 2013 2014 2015

Minnesota Farm Business Management Education

Vision: To provide educational opportunities for students to be successful in a competitive agricultural environment.

Mission: To deliver management education for decision-making that achieves an individual’s business goals.

Guiding Principles: 1. Improved Quality of Life in Rural Communities 2. Achievement of Student Goals 3. Awareness of the Global Importance of Agriculture 4. Integrity in Student Interaction 5. Timely and Student-Focused Programming

MnSCU and Participating College Websites: State FBM Website: fbm.mnscu.edu

Alexandria Technical and Community College: alextech.edu

Central Lakes College Website: clcmn.edu

Minnesota West Community & Technical College: mnwest.edu

Northland Community & Technical College Website: northlandcollege.edu

Ridgewater College: ridgewater.edu

Riverland Community & Technical College: riverland.edu

South Central College: southcentral.edu

St. Cloud Technical and Community College: sctcc.edu

Keith Olander, Dean Brad Schloesser, Dean 1830 Airport Road 1920 Lee Boulevard Staples, MN 56479 North Mankato, MN 56003 Office Phone: 218-894-5163 Office Phone: 507-389-7263 Email: [email protected] Email: [email protected] Website: Agcentric.org Website: centerofagriculture.org

Year:

Liquidity This Year 5-Year Ave Strong Vulnerable

Current ratio

Working capital

Working cap to gross revenue

Solvency (market) Note: These solvency ratios include deferred liabilities

Farm debt/asset ratio

Farm equity/asset ratio

Farm debt/equity ratio

Profitability (Cost)

Rate of return on farm assets

Rate of return on farm equity

Operating profit margin

Net farm income

EBITDA

Repayment Capacity (Accrual)

Capital debt repay capacity

Capital debt repay margin

Replacement margin

Term-debt coverage ratio

Replacement margin ratio

Financial Efficiency

Asset-turnover rate (market)

Operating-expense ratio

Depreciation-expense ratio

Interest-expense ratio

Net farm income ratio

25%

1.40 1.10

4%

60%

70% 40%

10%

10% 3%

25% 15%

20% 10%

60%

5% 10%

45% 30%

MyFarm Financial Scorecard

1.7 1.1

1.50 1.20

0.43 1.50

8%

Name:

30%

Developed by: University of Vermont Extension and Center for Farm Financial Mgt, University of MinnesotaUpdated by: Greg Tullis, Farm Business Mgt Program, Northland College

80%

5% 15%

Documents

Farm Business Management - AgCentric · 2015 Northern Minnesota Annual Report Page 2 Farm Business Management Education Programs 2015 Annual Report – Executive Summary The 2015